PAL Holdings, the parent company of Philippine Airlines, has posted an operating loss of Ps6.55 billion ($131 million) for the first quarter of 2020, a sharp reversal of the Ps2.53 billion operating profit in the same period last year.

Revenue for the quarter ended 31 March fell 18.3% year on year to Ps32 billion. The company attributes the revenue decline to the coronavirus pandemic, which has caused a sharp drop in passenger numbers and increased flight cancellations.

The passenger segment accounts for the bulk of revenues and this fell 21.4%, to Ps27 billion, and cargo revenues declined 14%, to Ps1.89 billion. Meanwhile, ancillary revenue grew 18.7% to Ps3.16 billion.

Expenses rose 5.2%, to Ps38.6 billion, led by an increase in costs associated with flying operations, particularly fuel hedging losses. Other operating expenses declined due to a reduced number of flights during the quarter.

The company’s net loss widened from Ps838 million to Ps9.38 billion. Cash and cash equivalents stood at Ps5.13 billion as at 31 March 2020, down from Ps9.29 billion on 31 March 2019.

Philippine Airlines had 98 aircraft in its fleet at period end, a net increase of one aircraft over the previous quarter. The airline added an Airbus A321neo and two De Havilland Canada Dash 8-400s, and removed two A320s.