But its losses were not a bad as the previous year as its decision to ground more planes and lay off more workers is bearing fruit.

READ: Suko na? PAL gives NCND response to report it’s seeking bankruptcy protection in US by end-May

PAL reported a comprehensive loss of P18 billion in the first half of 2021, down by 18 percent from its P22 billion loss in the same period in 2020.

Its revenues cratered by P18 billion or 51 percent year on year to P18.04 billion in the first half. Management, however, slashed operating expenses by a much bigger amount of P25 billion or 49 percent year on year to P26 billion in the first half this year.

READ: Vicious reality: Lucio Tan lays off 2,700 PAL workers, Sta. Maria apologizes for keeping them in the dark for months

Management cited the significant reduction in the number of flights operated (PAL reduced its fleet to 95 by returning two aircraft to lessors) and the retrenchment program in mid-March this year (2,700 workers laid off) for the substantial reduction in expenses. contributed to the decrease in operating expenses

PAL’s capital deficiency widened by 26 percent year on year to P86 billion in the first half as it burned an average of P3 billion per month during the period.

READ: Pilot indecision: Lucio Tan still has no final option on rescuing PAL from bankruptcy

But nine months since Nikkei reported that PAL was seeking court protection from its creditors in November 2020, ultra-bilyonaryo Lucio has yet to announce a bailout plan. FlightGlobal reported that PAL was expected to announce Chapter 11 bankruptcy filing as early as May 2021.

So far, Tan has declared he would shovel P24.25 billion in fresh funds into PAL with roughly 50 percent or P12.02 billion sourced from borrowings from government and private financial institutions.

READ: Eroplano pa more! Cash-strapped PAL has 13 aircraft coming in next 4 years as Lucio Tan implores Airbus to defer deliveries

These funds are on top of the P17.2 billion he has already injected into the company from the fourth quarter of 2019 to the first quarter of 2021. PAL will also raise P6 billion from an “exit facility” as part of its restructuring plan.

The post Still no bailout: PAL revenues plunge by half but retrenchment of 2,700 workers, flight reduction shave losses first appeared on Bilyonaryo Business News.