Amid the COVID-19 pandemic, Philippine Airlines has secured new funding to keep the airline financially afloat as it waits for additional emergency funding.
The funding of around PHP 15.2 billion (USD $300 million) is from PAL Holdings president Lucio Tan. In a report from ABS-CBN, Philippine Airline president Gilbert Santa Maria stated the airline has deployed a third of the funds (~PHP 5 billion) to keep the airline afloat.
“Without that liquidity, Philippine Airlines would probably not be here anymore,” Santa Maria said. According to Santa Maria, the airline is estimating the losses from the fleet grounding since late March to be around PHP 1 billion.
Despite the losses, Santa Maria stated the airline is “is not in immediate danger of bankruptcy,” though the recovery could take a few years.
Plan for Flight Resumptions
With the Philippine Airline fleet along with its local competitors grounded since late March, according to Santa Maria the airline is planning to operate 5-10% on its international network and 20-30% domestically during June should the quarantine measures be lifted.
“We will slowly ramp up as demand picks up,” he said, noting that destinations will include transpacific flights to Los Angeles and San Francisco apart from regional flights to Japan and Singapore.
While its flights are currently suspended, Philippine Airlines has continued to operate limited repatriation and cargo flights.