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Philippine Airlines parent posts US$1.5 billion loss; restructuring plan “in final stages”
June 17th 2021
PAL Holdings, the parent company of Philippine Airlines (PAL), has reported a 71.8 billion peso (US$1.5 billion) net loss for the 12 months to December 31, 2020, slumping deeper into the red from a net loss of 10.3 billion pesos in December 2019. Read More » Revenue declined 64.2%, to 55.3 billion pesos, PAL Holdings said in a regulatory filing to the Philippines Stock Exchange. The company said the pandemic continued to "undermine the group's ability to generate sufficient revenue and cash to meet its financial obligations". In May 2020, management began working on a recovery plan focused on fleet changes, effective customer engagement, cost control and financial restructuring that reduced near-term payments and ensured sufficient liquidity to stabilise the financial condition of the company. "To complete the recovery, PAL management and stakeholders are working on the final stages of a comprehensive restructuring plan that will enable the airline to emerge financially stronger from the current global crisis," the airline said. "PAL management will make the necessary disclosures at the proper time, once details are finalised. We are confident the restructuring will enable PAL to strengthen its capital structure, meet stakeholder obligations and position the company for long-term success."
