PAL lays off 300 workers as losses mount

MANILA, Philippines — Flag carrier Philippine Airlines (PAL) has laid off 300 workers as part of the company’s efforts to mitigate losses.

PAL said it completed yesterday a retrenchment process resulting in the separation of about 300 ground-based administrative and management personnel.

PAL said the retrenchment process is part of a business restructuring initiative to increase revenues and reduce costs.

“The streamlining will strengthen the company in the wake of losses sustained in 2019, aggravated by the ongoing travel restrictions and flight suspensions to areas affected by COVID-19,” the country’s flag carrier said.

According to PAL, the affected employees will receive appropriate separation benefits, additional trip pass privileges, and assistance in the form of career counseling and outplacement support.

The airline has also implemented a voluntary separation initiative for long-serving employees.

PAL said other initiatives under its business restructuring include revenue generation from an optimized route network and new ancillary products, more aggressive cost-management efforts, and investment in digital technology.

The airline has been striving to return to profitability after being in the red in the last couple of years.

The company widened its losses in the first half of last year as expenses shot up.

It has yet to release its full year 2019 financial statement.

The last time PAL finished a year profitable was in 2016 despite net earnings falling 39 percent year-on-year then.

By 2017, PAL incurred a net loss of P7.3 billion from a P4.13 billion profit the previous year on higher expenses.

PAL’s net loss was reduced to P4.33 billion in 2018.