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MANILA, Philippines – PAL Holdings, Inc. (PSE:PAL) reports a huge drop in its net income for the first nine months of 2016. The company’s net income decreased by 57 percent from P6.11 billion to P2.6 billion. Operating revenues during the period increased by 3.5 percent from P82.48 million to P85.35 million. Other revenues stood at P2.78 million from P1.5 million, an 85 percent climb.
The increased revenues during the period were due to Philippine peso weakening against the U.S. dollar to P47.12 from P45.04 per dollar against last year’s record.
On the third quarter, net loss soared at P2.01 million from a positive net income of the same period last year at P248 million, which is more than a 700 percent decline. Revenues, on the other hand, increased by six percent from P26.2 billion to P27.78 billion. Other revenues also rose from P365 million to P766 million.
PAL’s total assets increased from P114.41 billion to P119.91 billion, a five percent advance. Liabilities totaled P106.81 million from P104.27 million. Equity, on the other hand, had a 29.2 percent increase from P10.14 billion to P13.1 billion. The retained earnings of the company improved slightly from a deficit of P26.86 billion last year to P24.12 billion this year.
Total operating expenses of the company increased by 8.9 percent to a total of P83 billion, which was due to new routes introduction and flight frequencies increase. Moreover, servicing of aircraft, higher maintenance, passenger service, and sales also contributed in the higher expenses. This was partly countervailed by a decreased flying operations cost.
This November, the company eyes to acquire 10 small aircraft for its local expansion in 2017. According to its president, Jaime Bautista, the management signed an understanding memorandum for five and options for the rest of the aircraft. The purchasing agreement is now being finalized.
Besides its acquirement of 10 aircraft, the company is also pursuing a Delta Air Lines codeshare agreement. Delta Air Lines is one of the big three carriers in the United States. This will provide nonstop flights to America from Manila. This is also inclusive of a large domestic network of the said carrier.
PAL Holdings Inc. is a subsidiary of Trustmark Holdings Corporation. It is operated by Lucio Tan, which has a fleet of 79 aircraft.
The company’s earnings per share in terms of net income and total comprehensive income are P0.10 and P0.12, respectively.
PAL shares closed at 5.20-apiece on November 18, 2016, up by 13.29 percent year to date.