PAL Suffers P2.2-B Loss in First Quarter

Manila Bulletin
Wednesday, September 2, 1998
By James A. Loyola

Losses suffered by flag carrier Philippine Airlines ballooned by 337.36 percent to P2.2 billion for the first quarter of fiscal year ending March 1999 from net losses of P502.9 million in the same period in fiscal year March1998.

Based on the firm's unaudited financial statements filed with the Securities and Exchange Commission (SEC) yesterday, revenues dropped 15 percent to P7.67 billion from P8.97 billion mainly due to the strike by the firm's pilots in the first week of June which resulted in the cancellation of 69 percent of all flights.

Operating expenses also went down, but at a slower 14 percent to P7.83 billion from P9.02 billion. Furthermore, higher foreign exchange losses, non-operating expenses and financing charges further aggravated losses.

Total charges shot up 359.95 percent to P2.05 billion from P446.12 million in the previous year. During the period under review, PAL chalked up foreign exchange losses of P80.58 million from a gain of P11.34 million.

Non-operating charges surged to P824.21 million from P49.75 million while financing charges amounted to a whopping P1.15 billion from P407.72 million.

The firm said total liabilities went up by P4 billion against March 1998 due to the increase in obligations under capital lease, also on account of foreign exchange adjustments on foreign currency loans and an increase in accrued expenses.

Total assets inched up to P92.8 billion from P91.1 billion as a result of the increase in flight equipment due to the effect of foreign exchange adjustments on loans obtained in the acquisition of new aircraft.