Philippine Airlines extends Riyadh flight suspension amid Saudi airport security risks

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PAL extends Riyadh flight suspension

Highlights

Philippine Airlines extends suspension of Manila-Riyadh flights until Nov. 29 due to security risks at King Khalid International Airport after deadly attacks.
PAL Holdings posts attributable net loss of P6.12 billion in Q2 versus prior year’s P3.33 billion net income, with flying operations expenses up 68.3% to P35.29 billion.
PAL Holdings shares decline 1.11% to P3.57 at local bourse following continued Middle East operational disruptions and rising costs.

Suspension timeline and safety assessment

As reported by BusinessWorld, citing Philippine Airlines, the carrier extends the suspension of its Manila-Riyadh flights until Nov. 29 because of the evolving security situation at King Khalid International Airport. In an advisory issued on Monday, the flag carrier says it continues to monitor developments and assess conditions affecting the safe operation of its flights, adding that further updates will be provided as necessary.

The suspension covers flight PR654 from Manila to Riyadh and return flight PR655. PAL initially cancels its Riyadh flights on Oct. 8, then extends the suspension through Oct. 11 while evaluating airport conditions and their implications for flight safety.

The disruption follows attacks on King Khalid International Airport in Riyadh and Abha International Airport, which Yemen's Houthi rebels claim responsibility for. Saudi aviation authorities say the Oct. 7 attacks kill three people and injure 36 others.

Operational and financial implications for PAL

PAL does not specify whether it will suspend flights to other destinations as the conflict in the Middle East continues. The airline operates domestic and international services linking the Philippines with destinations across Asia, North America, Australia and the Middle East.

For the second quarter, parent company PAL Holdings, Inc. swings to an attributable net loss of P6.12 billion from attributable net income of P3.33 billion a year earlier, as expenses grow faster than revenue. Flying operations expenses rise 68.3% to P35.29 billion from P20.97 billion, while second-quarter revenue increases 10.8% to P51.38 billion from P46.39 billion.

At the local bourse on Monday, shares in PAL Holdings fall by four centavos, or 1.11%, to close at P3.57 each.

Our earlier report on the suspension of operations at King Khalid International Airport outlined how repeated drone and missile attacks heightened security risks in Riyadh and disrupted airport activity. We also noted that a growing number of governments issued travel advisories for Saudi destinations as the situation worsened, adding pressure on regional security and diplomatic efforts.

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