Philippine Airlines (PR, Manila Ninoy Aquino International) has said that it has implemented a far-reaching cost-cutting strategy including the deferral of new aircraft deliveries, a reduction in planned capital expenditure, and job cuts to the level of a "skeletal workforce" during the COVID-19 pandemic.
The airline did not reveal any further details regarding its cost-cutting programme. In its statement, it said that it secured additional capital from its shareholders and "endorsed an aggressive strategy to generate revenues and control costs".
During the first quarter of 2020, the carrier's parent PAL Holdings posted a PHP9.3 billion peso (USD189 million) net loss, despite having a relatively good January. It has yet to publish its financial results for the quarter ended June 30, which is expected to be much worse as the airline was almost completely grounded for the most part of the period.
According to the ch-aviation fleets module, Philippine Airlines has 13 outstanding orders for A321-200Ns, which were originally scheduled to deliver between October 2020 and 2024. The carrier does not have any known commitments from lessors.
