Philippine Airlines continues to fly and serve the public, now and into the future

To our valued PAL Family:

Throughout these trying times we have continued to fulfill our mission as a premier airline and flag carrier. We thank you for your hard work and dedication.

While the global pandemic has significantly impacted our business, we climbed back from the brink together, thanks to the support of our customers, shareholders, partners, lenders and our PAL personnel. Your team efforts made it possible for us to operate commercial, all-cargo and repatriation flights amidst the pandemic.

Today, we are embarking on a restructuring process that will provide sufficient liquidity during our recovery and strengthen our balance sheet. 

U.S. Chapter 11 financial restructuring is a well-established legal process that enables businesses to strengthen their financial structure while continuing to operate uninterrupted. 

Our highest priority is the safety and health of our employees, passengers and communities. And nothing about that will change as we go through financial restructuring.

Our business will continue to operate in the normal course throughout this process. 

Importantly, our Chapter 11 process is not an insolvency proceeding or liquidation. 

Below are a few important things to know:

  • Our flight operations will continue throughout and after our recovery process.  We will increase routes and flights as travel demand recovers with easing of government travel restrictions.
  • Customer service and support will continue uninterrupted.
  • All tickets, vouchers, and Mabuhay Miles will remain unchanged.
  • You will continue to be paid and receive benefits as usual, subject to the continuation of any temporary work arrangements as necessary. 
  • Employee travel benefit embargoes will be lifted with the lifting of government restrictions.
  • The vaccination of all employees remains a top priority, so you can protect yourselves and your families.
  • Current management will remain in place.
  • PAL has the liquidity to continue operating in the normal course.

Challenges will remain even as we complete this restructuring and exit Chapter 11, and your continued support is critical to PAL successfully fulfilling its mission. As the economy recovers and the nation rebuilds, our fellow Filipinos will look up to us to keep the flag flying, to sustain the links and connections that unite our archipelago and bring life to our communities and economy. 

Our service to our people during the pandemic has enabled us to survive through our 80th year; our continuing focus on our mission of service and care for our people will ensure that PAL will thrive well into the future.


Will the restructuring have an impact on my employment status?

No. Chapter 11 is a legal process for restructuring. We have together gone through the most challenging times in our history since March 2020, including the recent retrenchment that affected many of our colleagues. However, the Chapter 11 restructuring process enables us to continue operating as usual and to pay our employees in the ordinary course.

Will there be any changes, temporary or permanent, to my compensation and benefits package?

We intend to pay all employee obligations and wages and to continue providing benefits in the normal course. The restructuring will have no intended impact on existing temporary work arrangements which the company may continue to maintain or adjust based on the recovery of travel demand.

Is the current leadership team expected to remain in place?

Yes. We do not anticipate any changes to our current management team as a result of our restructuring process.

Where can I get more team member information about this process?

We are committed to keeping employees fully informed throughout this process. We will continue to share employee updates by email, town hall meetings, MyPALNet and our internal social media channels. Feel free to share your questions and concerns with your department and group leaders. We want everyone to be well informed and engaged as we direct our focus and attention to our public service mission as flag carrier and to all the achievements and challenges we will tackle in the coming months and years.


If you have any questions related to our process, please do not hesitate to reach out to your internal manager.