PAL expects to end year in the red. Here’s why
Saddled with P6 billion in unpaid obligations to the government, Lucio Tan-owned Philippine Airlines is seen to swing to a loss this year.
The P6 billion represents the unsettled navigational fees and other charges PAL owes to the Civil Aviation Authority of the Philippines and the Manila International Airport Authority.
PAL president Jaime Bautista said the airline was most likely to report a net loss this year due to its huge payables to the government.
“It will affect our cash flow, we will have to borrow money to pay for it. That’s the impact, its additional cost,” Bautista said.
Bautista said PAL is now in talks with local banks.
President Duterte earlier threatened to close down the Ninoy Aquino International Terminal 2, which PAL has been exclusively using since 1999 if the Tan-led airline failed to settle its debt to the government.
PAL’s parent firm PAL Holdings Inc. Incurred a comprehensive loss of P1.05 billion in the first half, a reversal of the P4.6 billion loss reported in the same period last year.