The Market Monitor Minding the Nation's Business
PAL Holdings Inc. and its subsidiaries reported a total comprehensive income of P2.7 billion for the quarter of its fiscal year ending March 31 representing a P1 billion decrease from the same quarter in 2015.
More international flights were operated resulting to higher aircraft and traffic servicing costs, up by 23.2 percent or P641.7 million from year-ago level.
PAL registered an increase of 4.1 percent in total revenues during the first quarter due to the effect of the foreign exchange fluctuations, PAL reported to the bourse.
Total revenues for the first quarter of the current fiscal year amounted to P29.1 billion, up by P1.15 billion or 4.1 percent higher from last year’s P27.98 billion.
The currency exchange rate caused the total expenses for the January-to-March period to rise by 6.2 percent, or P1.5 billion, compared to the same quarter in 2015.
The increase in total expenses was also attributed to the costs associated with aircraft and traffic servicing, passenger service, maintenance, reservation and sales and general and administrative costs.
PAL reported that flying-operation expenses were reduced by P462.3 million, attributable mainly to lower fuel costs. Jet fuel continues to consume the largest of PAL’s operating expenses, which registered a decrease of P1.14 billion.
This was brought about by the decline in the average fuel price per barrel from $89.91 in 2015 to $60.87 in 2016. PAL said “Other Income” items fell by P241 million, compared to the P850 million recorded a year ago, mainly due to the increase in unrealized mark-to-market losses.
The company recognized “other comprehensive loss” of P273.4 million and P300,000 for the quarters ended March 31, 2016 and 2015, respectively. RIZA LOZADA