Philippine Airlines sees losses third year in a row
Philippine Airlines expects to post losses for a third year, as the impact of a slow global economic recovery, lower passenger traffic and internal problems beset the country’s flag carrier.
“For our fiscal year ending March this year, it will still be a loss, “PAL President Jaime Bautista said on Wednesday.
The airline said previously that it posted better-than-expected revenue for January and February this year.
The ailing airline sustained over $350 million or about P15 billion in losses during the last two fiscal years, while its equity has also dropped significantly to a little over $1.1 million as of February.
Adding to its woes, PAL is still uncertain how to repay $46 million worth of debts maturing in June 7. The debt is part of the airline’s outstanding $2.3 billion debt, which has already been pared down to $1billion.
Bautista said the $46 million due next month is a principal payment which is scheduled to be paid once a year.
He did not disclose how the carrier will come up with the payment. “We will try our best. It’s really a challenge.”
On top of the yearly $46 million repayment, PAL is also paying $10 million monthly to its creditors.
PAL said its efforts to find new investors are being stymied by the impasse between management and PAL employees, currently locking horns over the airline’s plans to restructure and lay off 3,000 workers effective June 1. The case is now under the jurisdiction of the Department of Labor and Employment. ABS-CBN News
