PAL swings to H1 operating loss amid Covid-19 blues

Philippine Airlines swung to an operating loss of Ps4.7b ($93.7m) for the first six months of 2021, under the severe impact of the coronavirus pandemic. Total revenue for the six months ended 30 June halved to Ps18b, with passenger revenue falling 60.4% Ps 11.6b, according to the airline’s interim results release. One area of improvement was cargo, with revenue rising 31% to Ps5.5b. Net losses for the first six months of 2021 came to Ps16.6b, compared with Ps20.7b a year earlier, as the PAL halved expenses to Ps13.8b. “The Group’s liquidity situation became more critical in 2020 and 2021 due to severely weak passenger sales and revenue as an adverse effect of the Covid-19 pandemic,” says PAL. “The Covid-19 outbreak and the measures taken by the Philippine and foreign governments have caused disruptions to PAL’s passenger operations, resulting to temporary suspension and limited operations of its flights both for domestic and international routes. Consequently, the decline in revenue and cash inflows has put significant strain on the Group’s liquidity position and on its compliance with certain loan covenants.”<br/>