Flag carrier Philippine Airlines (PAL) is optimistic that its domestic flight capacity will return to pre-COVID-19 pandemic levels later this year, banking on recovery of travel demand and looser restrictions.
At an event in Makati City, PAL president and chief operating officer Stanley Ng said that the airline’s performance in the first quarter of 2022 was “very encouraging.”
“It was better than expected,” Ng told reporters during the memorandum of understanding (MOU) signing ceremony between PAL and the Singapore Tourism Board (STB) on Tuesday.
“For domestic travel, we’re already at more than 80% of our pre-pandemic level, while for international, we’re around at 60% of our pre-pandemic level. So the results are really encouraging,” he added.
Philippine Airlines president and COO Stanley Ng hopes that the flag carrier will return to its pre-pandemic domestic flight capacity by the fourth quarter of 2022. To date, PAL’s domestic capacity is at 80% of pre-pandemic levels while international capacity is at 60%. pic.twitter.com/HKn9cqV4kk
— Ted Cordero (@Ted_Cordero) April 19, 2022
With this, the PAL chief said that a return to 100% pre-COVID-19 pandemic domestic capacity is “very possible” within this year.
Bud Britanico, PAL vice president for sales, said that, for instance, flights bound for Siargao and Surigao are on their way “to recovery, full capacity.”
“You have those other destinations picking up. So, very optimistic, especially for domestic tourism. That’s easier because that is within our control,” Britanico said.
Ng added that a return to pre-pandemic domestic capacity will most probably be achieved by the fourth quarter of 2022.
“Usually, the third quarter is lean months that’s why we don’t see [it] going back to 100%. However, for the last quarter that’s a very good possibility,” the PAL chief said.
Partnership with Singapore
Meanwhile, PAL and STB entered into a partnership to promote travel to Singapore, which recently allowed quarantine-free travel for fully vaccinated individuals.
Under the partnership, both parties will launch a joint “SingapoReimagine” campaign.
Apart from the campaign, PAL passengers will also be entitled to exclusive boarding pass privileges that provide special deals and promotions across a wide range of tourism establishments in Singapore, including Museum of Ice Cream, Mandai Wildlife Reserve, establishments on Sentosa.
“With this partnership, we are really looking forward that this route can recover soon. We’re looking at adding a third, and by the fourth quarter, we’re looking at going back to the pre-pandemic level of four flights,” Ng said.
For his part, STB chief executive Keith Tan said, “The Philippines is a key and important tourism market for Singapore and strong flight connectivity between both our countries is really important for us both for tourists and business travelers.”
The flag carrier 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 pandemic, 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.
PAL’s operator, PAL Holdings Inc., saw its bottom line reversed from a net loss to a net income in 2021.
PAL Holdings reported a net income of P60.6 billion, a turnaround from a net loss of P73.1 billion in 2020.
Its revenues stood at P58.7 billion, up 6.2% from P55.3 billion year-on-year. —VBL, GMA News
PAL: Domestic flight capacity to return to pre-pandemic levels by Q4
Source: News Panda Philippines
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