PAL Holdings Inc., operator of Philippine Airlines, saw its bottom line reverse from a net loss to a net profit last year.
In a statement to the Philippine Stock Exchange on Wednesday, PAL Holdings reported net profit of 60.6 billion pesos, a turnaround from a net loss of 73.1 billion pesos in 2020.
The company also said its revenue last year was 58.7 billion pesos, up 6.2 percent from 55.3 billion pesos year-on-year.
“The significant increase in revenue is primarily due to the increase in freight revenue, as air freight has been a critical partner in the delivery of critical goods since the pandemic,” PAL Holdings said.
The company added that operating expenses were reduced by 23.3% to 62.8 billion pesos in 2021 from 81.84 billion pesos in 2020.
“This is primarily due to expenses related to grounded aircraft which have been recorded in ‘other expense,'” he said.
The flag carrier, meanwhile, emerged from voluntary Chapter 11 bankruptcy proceedings last year.
A Chapter 11 bankruptcy filing allows a debtor company to reorganize its debts while remaining in business.
In September of last year, the flag carrier filed a voluntary petition for pre-restructuring through the United States Chapter 11 process.
As part of its agreements with creditors, the flag carrier will guarantee some $505 million for its turnaround plan when it exits the process – the first tranche will be a $250 million facility debt to be reduced over the course of five next few 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, flagship PAL expressed optimism for a stronger 2022 release by unveiling plans for network expansion, innovation digital and a more freight-focused strategy.—AOL, GMA News