PAL Holdings to raise authorized capital

MANILA, Philippines — PAL Holdings Inc., the listed operator of flag carrier Philippine Airlines, is preparing to raise funds as it seeks to more than double its capital base.

In a stock exchange filing, PAL Holdings said that its board approved an increase in the company’s authorized capital stock to P30 billion from P13.5 billion.

The increase is expected to support the future fund raising activities of the company.

PAL Holdings reported a net loss of P16.56 billion in the first half, a 20 percent reduction from the P20.75 billion net loss incurred in the same period last year.

Recognizing other comprehensive loss amounting to P1.48 billion mainly due to unfavorable effect of foreign exchange translation, its total comprehensive loss during the six-month period stood at P18.04 billion, down 18 percent from last year’s P22.02 billion.

Consolidated revenues of the company during the period plunged by 51 percent to P18.04 billion from P36.82 billion on the back of the continuing impact of the pandemic to passenger operations.

PAL Holdings, a publicly listed company, is not included in the Chapter 11 filing of Philippine Airlines Inc. last Sept. 3 in the US.

Last year, Philippine Airlines Inc. also increased its authorized capital stock from P13 billion to P30 billion, a move which was then made to raise funds as part of the flag carrier’s transformation to sustainable profitability and a higher level of competitiveness.