PAL Holdings Inc., the parent company of flag carrier Philippine Airlines reported total comprehensive income of P56.49 billion last year, a significant turnaround the total comprehensive loss of P73.00 billion in 2020.
In a disclosure to the Philippine Stock Exchange, the firm said consolidated revenues improved 6.2 percent to P58.70 billion in 2021 from the P55.26 billion reported in 2020.
“The significant increase in revenues was mainly due to the increase in cargo revenues as air cargo has been a vital partner in delivering essential goods since the COVID-19 pandemic” PAL said.
Consolidated operating expenses were reduced by 23.3 percent from P81.84 billion in 2020 to P62.80 billion in 2021 mainly due to expenses related to grounded aircraft.
Flying operations expenses dropped by 31.3 percent from P48.43 billion in 2020 mainly due to lower fleet costs such as depreciation expenses and lease charges related to grounded aircraft and fuel expenses due to decrease in number of flights operated.
Aircraft and traffic servicing expenses likewise decreased 14.8 percent to P6.11 billion from the P7.18 billion year ago level mainly due to lower ground handling and landing and take-off charges.
Passenger service expenses decreased by 21.3 percent from 5.08 billion to =P4 billion due to decrease in number of passengers which resulted in lower passenger food and inflight expenses.
Maintenance expenses dropped by 19.1 percent to P10.06 billion from 2020’s P12.44 billion driven by grounded aircraft and lower utilization of aircraft.
Reservation and sales were lower at P3.16 billion in 2021 as compared to P3.20 billion in 2020 mainly due to the significant decrease in sales due to travel restrictions.
General and administrative expenses increased 11.9 percent to P6.18 billion from P5.53 billion in 2020 due to restructuring expenses such as legal and professional fees.
The firm earned other income of P64.39 billion mainly attributable to gain from debt settlement and condonation of debt while the other charges-net was P29.45 billion in 2020 due to the impairment loss recognized for some of the Group’s operating fleets.
The movements of deferred tax assets and liabilities on all deductible temporary differences, particularly the derecognition of prior year’s NOLCO of PAL as of December 31, 2021, resulted in an income tax benefit of P6.91 billion for 2021.
The Company recognized other comprehensive loss of P4.12 billion in 2021 versus other comprehensive income of P79.98 million in 2020.
This was mainly brought about by the favorable effect of foreign exchange translation partly offset by the losses on fair value adjustments of the Company’s quoted investments.
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