MANILA, Philippines – Flag carrier Philippine Airlines (PAL) suffered a net loss of P9.4 billion in the 1st quarter of 2020, as lockdowns were implemented globally amid the coronavirus crisis.

This represents 1,019% more in losses from the P838-million loss it posted during the same period in 2019, according to documents submitted by PAL Holdings, the company which operates the flag carrier, to the Philippine Stock Exchange on Friday, June 5.

Revenues also fell to P32.1 billion during the 1st quarter, 18% lower than the P39.2 billion in the same period last year.

Passenger revenues nosedived by 21.5% to P27 billion from the P34.4 billion a year ago, with travel restrictions in place and demand plummeting worldwide.

Expenses during the period increased by 5% to P38.6 billion from the P36.7 billion recorded a year ago. 

Tycoon Lucio Tan rescued the struggling airline by injecting around P15 billion and saving it from immediate bankruptcy, according to PAL president Gilbert Sta Maria in an interview on ANC.

The flagship carrier earlier announced that it laid off some 300 employees due to struggling finances.

PAL, along with rival Cebu Pacific and AirAsia, had asked the Philippine government for a lifeline, as the threat of bankruptcy looms.

Cebu Pacific earlier reported losses amounting to P1.18 billion due to flight restrictions as well. – Rappler.com