Philippine Air’s parent posts record loss on pandemic curbs

Philippine Airlines Inc.’s parent company posted a record loss last year, reflecting the “extraordinary” impact of the coronavirus pandemic on the carrier.

PAL Holdings Inc. reported a 71.8 billion pesos ($1.48 billion) loss in calender 2020, compared to a 10.3 billion peso shortfall the year before, the company said in a stock exchange filing Thursday. In the first quarter of this year, its loss narrowed to 8.6 billion pesos from 9.4 billion pesos a year earlier.

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The company, controlled by billionaire Lucio Tan, said it reduced expenses by 46% in 2020, but this was offset by a 64% drop in revenue as global travel restrictions forced it to limit flights.

PAL Holdings said management and stakeholders are working on the final stages of a comprehensive restructuring plan for the airline. The flag carrier has drawn on bridge funding and support from its majority shareholder, deferred payments to lessors as well as lenders and suppliers, and carried out a retrenchment program.

“PAL’s flights and operations will not be affected in any restructuring,” the company said in the statement. “We will increase our international and domestic flights as the market recovers with easing of travel restrictions.”

Philippine Air has increased regular flights on most of its pre-pandemic routes while adding all-cargo services and special repatriation flights in North America, Middle East and Asia, the parent company said.

PAL Holdings were halted from trading on Thursday halt from 9:30 am on Thursday. The stock has fallen 7.6% this year.