PAL losses widen as financing charges soar
Philippine Airlines plunged deeper into the red as losses grew more than twice in the first half.
PAL widened its net loss to P3.33 billion in January to June from only P1.4 billion a year ago on higher financing charges.
From only P902.47 million last year, other charges surged more than sixfold to P6.27 billion due to the adoption of Philippine Financial Reporting Standards, which requires lessees to recognize lease liability, and a right-of-use asset for almost all leases.
The Lucio Tan-led airline managed to grow its revenues by 8.6% to P81.25 billion due to the growth in passenger volume, additional flight frequencies and introduction of new routes.