After slashing operating expenses in the first nine months of 2021, PAL Holdings Inc., the parent company of flag carrier Philippine Airlines (PAL), managed to stem its hemorrhage, bringing down losses from P28.58 billion in the same period in 2020 to P21.61 billion this year.

While the company incurred P5.59 billion comprehensive losses in foreign exchange in the first nine-months of 2021, comprehensive loss totaled P27.2 billion, lower than last year’s P29.03 billion.

PAL also registered 29 percent lower revenue losses of P32.16 billion versus last year’s P45.29 billion, as travel demand continued to be in the doldrums.

But on the flipside of reduced flights, PAL slashed its operating expenses, by 37 percent to P42.75 billion.

In addition, the airline brought down expenses related to grounded aircraft and manpower costs after retrenching workers in mid-March.

PAL is optmistic that domestic travel demand will perk up as more local governments ease restrictions and more people are vaccinated.

Overall, PAL’s capital deficiency stood at P95.30 billion.

Its consolidated total liabilities rose four percent to P307.82 billion due to the increase in notes payable from additional loans and increased accrued expenses plus current liabilities.

However, the airline partly offset its lease liabilities after returning aircraft to lessor, reducing its long-term obligations as well.