Philippine Airlines parent reports record US$1.5b loss for 2020

The parent company of Philippine Airlines booked a record 73 billion pesos (US$1.51 billion) loss in 2020, up seven fold from a year earlier, after the coronavirus pandemic lashed the global aviation sector.

In a disclosure, PAL Holdings Inc said it is in the final stages of putting together a debt restructuring plan for the flag carrier to help it through the crisis.

Several other Southeast Asian airlines have already agreed restructuring plans or have sought approval for capital infusions and court-assisted debt relief.

PAL Holdings said consolidated revenue at the airline fell by 64 percent to 55.3 billion pesos last year due to travel restrictions imposed to prevent the spread of the novel coronavirus.

"Philippine Airlines will have a long way to go for recovery," the company said. It is working on the final stages of a restructuring plan, including court-assisted protection, to improve the capital structure and meet obligations, it said.

PAL Holdings had around US$6 billion in liabilities as of end-December.

Philippine Airlines, partly owned by Japan's ANA Holdings Inc, announced in October it was slashing 2,700 jobs, or a third of its workforce.

It has a fleet of 97 Boeing and Airbus aircraft, 81 of which are leased.

Operations will not be affected by any restructuring, the airline said, adding it will increase international and domestic flights as markets recover with easing travel restrictions.