Philippine Airlines Pays 80% of $329 Million Refund Requests

(Bloomberg) -- Philippine Airlines Inc. said it has received refund requests totaling 15.9 billion pesos ($329 million) amid the coronavirus pandemic, seeking customers’ understanding as it has only paid back 80% of that amount.

The carrier owned by billionaire Lucio Tan has canceled more than 60,000 flights since March, affecting over 1.3 million passengers, it said in a statement. Asia’s oldest airline has restored nearly 15% of its local and international network and plans to ramp up flights as travel and quarantine restrictions ease.

“The loss of revenues deprived us of liquidity to make prompt refund payments, even as lockdown restrictions posed serious staffing and logistical limitations,” Philippine Airlines said. “We recognize that this has taken some time, and we greatly appreciate your understanding as we continue to resolve these challenges over the coming months.”

Philippine Airlines Receives New Capital to Soften Lockdown Blow

Shares of PAL Holdings Inc., Philippine Air’s parent, fell 1.4% on Monday to its lowest in more than a week. The nation’s benchmark stock index was little changed.

Cebu Air Inc., the nation’s largest budget carrier, last week said it has refunded 2.4 billion pesos or half of total refund requests since April.

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