Philippine Airlines Inc. expects to emerge from chapter 11 bankruptcy before the end of the year, with a leaner fleet and fewer destinations as a recovery in travel demand isn’t likely in the next few years, President Gilbert Santa Maria said, Bloomberg News reported. Majority owned by billionaire Lucio Tan, the carrier filed for chapter 11 bankruptcy in New York on Sept. 3 with a lender-supported plan to help it recover after the pandemic devastated global travel. It aims to cut $2 billion in borrowings, will get $505 million in equity and debt financing from existing shareholder and banks, as well as $150 million of debt financing from new investors. Philippine Airlines will trim its fleet to 70 planes from more than 90, with a “good number” of wide-body aircraft to be returned, Santa Maria said in a briefing Monday. “The remaining fleet will be more than adequate to see our demand through until recovery” which isn’t likely until 2025, he said. No further job cuts are expected after the company reduced its workforce by 30% in March.
