Philippine Airlines plans to seek court protection from creditors

Philippine Airlines is poised to seek court protection for its debt restructuring as the pandemic-hit flag carrier fights for survival. The company, which is cutting around 2,700 jobs, or a third of its workforce, is also looking to return around 20 of its leased aircraft to relieve a financial burden amounting to at least $1b and raise $505m "for post-restructuring liquidity requirements." These plans were disclosed by airline officials during an online town hall meeting with employees and in a separate meeting with the Department of Finance last week. The plans for a court-backed restructuring come amid deepening financial distress brought about by the COVID-19 crisis. Philippine Airlines' listed parent PAL Holdings recorded a net loss of 29b pesos ($603m) from January to September, three times larger than the 8.4b pesos loss a year ago. During the same period, revenue shrank to 45b pesos from 118b pesos due to widespread lockdowns imposed to fight the virus. PAL Holdings also declared a 24b peso capital shortfall as of end-September.<br/>