Philippine Airlines widens 2Q losses on higher costs

Philippine Airlines reported a 2019 Q2 net loss of PHP2.3b ($43.6m), widened from a PHP173.4m loss in the year-ago quarter. A major reason for the decline was an increase in non-operating costs related to adopting a new accounting policy for certain items. Q2 revenue rose 10% year-over-year to PHP42b from PHP38.2b. The revenue increase outpaced PAL’s rise in costs for the quarter. The Philippine Stock Exchange asked the flag carrier earlier this month to clarify media reports on cutting costs. The reports quoted a senior airline official as saying PAL aims to trim expenses, particularly in administrative areas, and would look to more outsourcing. The company’s goal is to return to profitability in 2020. The airline told the exchange the cost-cutting and outsourcing quotes are “consistent with PAL’s continuing search for the most efficient and reliable service to its customers.” The carrier noted it was “providential” that newly named president, Gilbert Santa Maria, “is very knowledgeable about [this] process.”<br/>