PAL settles P13B in refunds

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    Philippine Airlines (PAL) said it has settled P12.7 billion worth of refunds related to travel restrictions due to the new coronavirus disease (COVID-19) pandemic.

    The airline said it has refunded about 80 percent of the more than $300 million or P15.9 billion COVID-related refund requests.

    Since the start of travel restriction in March 2020, PAL was forced to cancel more than 60,000 flights affecting over 1.3 million passengers.

    “The loss of revenues deprived us of liquidity to make prompt refund payments, even as lockdown restrictions posed serious staffing and logistical limitations,” PAL said.

    To address the system backlogs, PAL has progressively stepped up its processing capabilities.

    PAL said it is committed to fulfill all refund obligations, and apologized for the long processing time.

    PAL has now restored nearly 15 percent of its regular domestic and global network, and intend to ramp up to more flights and more routes in line with an expected easing of travel and quarantine restrictions.

    Data from Civil Aeronautics Board (CAB) showed that, Philippine Airlines and its unit PAL Express carried 1.6 million passengers in domestic in January to June this year a significant reduction from 4.6 million passengers flew in the same period last year.