Philippine Airlines has filed for bankruptcy protection in the United States to pave the way for a planned restructuring from the economic effects of the coronavirus crisis. The airline plans to continue to operate.
The Philippines' flag carrier announced that it has filed for Chapter 11 bankruptcy with a US court. The company has a number of creditors outside the Philippines.
It seeks to cut two billion dollars in borrowings through a restructuring plan.
The airline company posted a loss of more than 16.5 billion pesos, or about 330 million dollars, for the first half of this year after demand for air travel plunged due to the coronavirus pandemic.
The company has already laid off 2,300 employees, or about 30 percent of its workforce.
Other carriers are also struggling for recovery while nations continue to maintain restrictions on travel and movements amid the pandemic.
Thailand's flagship carrier Thai Airways International is among them. It filed for bankruptcy last year.