The Philippines’ national flag carrier, Philippine Airlines, has posted a net loss of 16.6 Billion Pesos ($330.9 million) in the first 6 months of 2021. In 2020, the airline reported a net loss of 20 Billion Pesos ($399 million). 

“The group’s liquidity situation became more critical in 2020 and 2021 due to severely weak passenger sales and revenue as an adverse effect of the Covid-19 pandemic,” Philippine Airlines said in a statement, after reporting a 60.4% drop in passenger revenue.

Amidst the increasing losses, the airline returned two of its existing aircraft to its lessor last month and also deferred deliveries of new aircraft. The new planes’ delivery, which were originally scheduled for2020 and 2021 have now been moved to being received between 2026 and 2030. 

As the airlines’ revenue decline resulted in significant strain on the group’s liquidity position, Philippine Airlines is undergoing a restructuring plan as an attempt for business continuity. The company has also earlier carried a retrenchment program, sought to seek court protection for its debt restructuring, and implemented cost-cutting measures.