Reservations, Refunds + More: What PAL's Bankruptcy Means for You

philippine airlines bankruptcy
PHOTO BY Wikimedia Commons ILLUSTRATION War Espejo

( Philippine Airlines said on Friday, September 3, that they have filed for Chapter 11 of the U.S Bankruptcy Code or a "reorganization" bankruptcy, which is not entirely as bad as it sounds. According to the United States Courts, this allows them to continue operating the business and borrow some money while a financial reorganization is proposed. It's a buffer and a chance to stay afloat before things completely go south.


Also read: PAL Files for Bankruptcy; Here's How It Plans to Keep Flying

"Phlippine Airlines will maintain its position as a premier global airline, better equipped to sustain the Philippines' vital air links. PAL will continue to serve its valued customers and the Philippine economy, now and long into the future," Dr. Lucio C. Tan, chairperson and CEO of PAL, said.

"The restructuring will enable Philippine Airlines (PAL) to emerge with fresh capital, lower debt and a sturdier financial foundation for the future," the flag carrier also said in a statement. And for PAL fliers, the airline says that they "will continue to fly and to serve [their] customers" throughout this process, and that it's business as usual. The temporary process is expected to last within 2021. Through the website, the flag carrier remains transparent about their recovery plan.

Here's what frequent travelers should know about the Philippine Airlines bankruptcy process:

  • All tickets, reservations, travel vouchers, and Mabuhay Miles remain valid. Refund policies also remain the same.
  • PAL tickets can still be purchased via the website, mobile app, reservations hotlines, ticket offices, and travel agents.
  • The airline does not expect ticket prices to be affected. They assured customers that they will continue to offer special promotional fares from time to time.
  • Mabuhay Miles Elite and Premier Elite memberships are valid until February 2021 with status automatically renewed until February 2022.
  • Unused Mabuhay Miles are expected to expire in Janury 2022. But the airline will continue to monitor the pandemic situation to "adjust miles expiry."
  • Unused travel vouchers and flight credits will still be honored.
  • Upgrade Travel Certificates and Service Class Upgrades are also still valid.
  • PAL has restored most of their domestic and international, but still below pre-pandemic levels. They continuously assess their route network in light of international quarantine restrictions and are "committed to continuing to build flight frequencies progressively."
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"The restructuring is good news for customers and partners, since it will create a healthier and financially stronger airline," PAL assured their patrons.

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