Shares of PAL Holdings opened unchanged at 6.05 pesos (US$0.12) and soared over 15% during morning trade. Meanwhile, the benchmark Philippine Stock Exchange index dipped 0.06% at the opening bell.
The PSE suspended trading of PAL Holdings in June 2021 when the airline was already lurching toward bankruptcy protection after an independent auditor found the company’s 2020 financial statement problematic.
PAL Holdings recently refiled an amended financial report, this time with an unqualified opinion from its auditor.
Philippine Airlines filed for Chapter 11 bankruptcy in a New York court in September and completed the process in December.
Its restructuring slashed US$2.1 billion in debts and saw 20 aircraft returned to lessors. The company had over US$6 billion in liabilities and 91 aircraft prior to the filing and had laid off a third of its staff.
Resumption of trade in PAL Holding comes as the carrier moves to recover from the Covid-19 pandemic, which has hammered global aviation.
Philippine Airlines plans to expand cargo operations and introduce digital initiatives, including a mobile-first website for bookings and other services.
As the pandemic wanes, the company has added 1,500 flights this month and expects domestic flights from Manila to match pre-pandemic levels starting in April.
“We will continue to develop new all-cargo markets, removing dependence on passenger traffic as a single revenue stream,” said Philippine Airlines acting president Stanley Ng during the company’s 81st anniversary celebration on March 15.
The airline, he said, will continue “hybrid flights”, carrying cargo in one direction and passengers in another using the same aircraft.
Ng — son-in-law of the airline’s billionaire owner Lucio Tan — assumed leadership in January, replacing Gilbert Santa Maria, who led Philippine Airlines during the onset of the pandemic and the bankruptcy filing.
Despite improved prospects, however, Philippine Airlines wants additional capital.
PAL Holdings — in which Japan’s ANA Holdings has a small stake — told the PSE early this month that the airline was negotiating an additional US$100 million, three-year loan from international lenders to support recovery.
“We look forward to a comeback year for Philippine Airlines and for our country,” said Tan in a statement during the anniversary celebration.
“Our 81st birthday marks a day of rebirth for PAL. We will make good use of our new life by delivering a stronger, more reliable and dynamic airline.”