Philippine Airlines returns planes as part of restructuring

• Philippines Airlines will return nearly a quarter of its planes to leasers as part of its financial restructuring process
• On Friday, the airline announced it was marking its 80th anniversary by beginning a US Chapter 11 financial restructuring
• The airline says it will come out of the restructuring process with “fresh capital, lower debt and a sturdier financial foundation”
• For now, that means returning 22 of its 92 planes, and postponing the delivering of 13 new jets from Airbus

Philippine Airlines will return nearly a quarter of its planes to leasers and push back a delivery from Airbus as part of its financial restructuring process.

The airline doesn’t expect to return to pre-pandemic operation levels for another three or four years, executives today said in a press conference, and as such will return 22 of its 92 planes to leasers.

Further, the company has negotiated to postpone — or cancel at a later date — a delivery of 13 new jets from Airbus.

An 80th anniversary bankruptcy

On Friday, the airline announced it was marking its 80th anniversary by beginning a US Chapter 11 financial restructuring.

A note from our team: Philippine Airlines ​continues to serve our valued customers as we embark on a key stage of our recovery with the support of our stakeholders and the commitment of our personnel. ​ ​

For more information, please visit https://t.co/qyz7aCKmVf. pic.twitter.com/fveK7HCXqS

— Philippine Airlines (@flyPAL) September 4, 2021

The proposed restructuring — which requires court approval — was submitted to the Southern District of New York.

In a statement on its website, Philippine Airlines said the voluntary process would allow the company to emerge with “fresh capital, lower debt and a sturdier financial foundation”.

For now, the airline is reassuring customers it is “business as usual”.