By EMMIE V. ABADILLA
Starting 2020 big, the country’s flag carrier Philippine Airlines (PAL) increased its authorized capital stock from ₱13 billion to ₱30 billion, as part of its transformation to sustainable profitability and higher competitiveness.
The flag carrier yesterday made the announcement after majority of its stockholders approved the capital stock hike in a special meeting at the Century Park Hotel.
The capital stock increase will be filed with the Securities and Exchange Commission (SEC).
PAL will be 79 years old next month and has been re-certified as a 4-Star airline last year by ratings firm Skytrax. It was voted as the World’s Most Improved Airline of 2019 based on a global survey of more than a million passengers. The US-based Airline Passenger Experience (APEX) association also rated PAL a 4-Star Major Airline for 2020, based on customer votes.
The flag carrier received deliveries of new aircraft in 2019, the last two Airbus A350-900s (Love Bus) – completing the long-range fleet – and a new 195-seat variant of the A321neo. It has a fleet of 97 aircraft to date.
Initially, PAL projected to be in the black by 2019 but has re-set its targets and expected to be profitable this 2020.
It also put on hold its ambition to be a five-star airline around this period.
The last time PAL showed profits was in 2016 when it netted ₱4.13 billion, although net earnings fell 39 percent year-on-year at the time.
The following year, parent firm PAL Holdings Inc. lost ₱7.3 billion due to higher expenses. The airline reduced its net loss to ₱4.33 billion in 2018.