Philippine airline PAL has filed for bankruptcy in the United States and said it will undergo a financial restructuring to recover from losses due to the impact of the coronavirus (Covid-19) pandemic on global travel.
Philippine Airlines (PAL) said it filed for bankruptcy in New York after entering into a series of agreements with the company’s lenders, lessors and suppliers to cut $2 billion in payments.
The company assured its customers that its operations will not be affected by the financial restructuring plan, adding that it hopes to continue to increase its domestic and international flights as travel recovers from the Covid-19 crisis.
The company said it has support agreements from 90% of its lenders.
She added that the restructuring plan will allow it to reduce the number of its fleet of aircraft by 25%, explaining that the recovery plan allows the company to return at least 20 aircraft.
South Korean flights to Manila canceled after volcano eruption