PAL Holdings reverses net loss, books P60.6B net income in 2021

Flag carrier Philippine Airlines operator PAL Holdings Inc. saw its bottom line reversed from net loss to net income last year.

In a disclosure to the Philippine Stock Exchange on Wednesday, PAL Holdings reported a net income of P60.6 billion, a turnaround from a net loss of P73.1 billion in 2020.

The company also said its revenues last year stood at P58.7 billion, up 6.2% from P55.3 billion year-on-year.

“The significant increase in revenues was mainly due to the increase in cargo revenues as air cargo has been a vital partner in delivering essential goods since the pandemic,” PAL Holdings said.

The company added operating expenses were slashed by 23.3% to P62.8 billion in 2021 from P81.84 billion in 2020.

“This is mainly due to expenses related to grounded aircraft which were recognized under ‘other charges’,” it said.

The flag carrier, meanwhile, emerged from its voluntary Chapter 11 bankruptcy proceedings last year.

A Chapter 11 bankruptcy filing allows a business debtor to reorganize its debts while staying in operation.

In September last year, the flag carrier filed a voluntary petition for a prearranged restructuring under the US Chapter 11 process.

Under its arrangements with creditors, the flag carrier will secure some $505 million for its recovery plan upon its exit from the process — the first tranche will be a $250-million facility debt to be pared down in the next five years, and the second tranche worth $255 million will be converted into equity.

After overcoming financial challenges last year due to the COVID-19 pandemic, flag carrier PAL expressed optimism that it would emerge stronger in 2022 as it unveiled plans for network expansion, digital innovation, and a more cargo-driven strategy.—AOL, GMA News