The airline said in a statement on Monday it has locked in fuel supply until June 2026, a key buffer that Moody’s Ratings cited as helping mitigate immediate risks from geopolitical tensions.
New funding options unlocked
PAL is the first ASEAN airline to secure a public international credit rating from a major global agency.
“This inaugural Ba2 rating is a powerful validation of progress we have made over the past five years—enhancing operational reliability, rebuilding our network with discipline, and improving our cost and capital structure,” said Richard Nuttall, president of Philippine Airlines.
“Importantly, having this rating will strategically broaden our access to diverse funding sources and provide our stakeholders with independent assurance of PAL's financial resilience in a complex global aviation landscape”, he added.
Rating backs recovery
Moody’s assigned PAL a Ba2 rating, a level below top-tier investment grade but signaling improving financial strength after its Chapter 11 bankruptcy and successful restructuring, which was backed by the Tan family, during the COVID-19 pandemic.
Moody’s assigned PAL a Ba2 rating, two notches below investment grade, signaling improving financial strength after its restructuring.
Risks cited
“While Moody's acknowledged potential indirect exposure to higher fuel costs amidst the ongoing conflict in the Middle East, it also pointed to PAL's risk management measures, such as securing fuel supply through the end of June 2026, as a factor mitigating immediate risks following thePhilippine government's recent declaration of an energy emergency,” PAL explained.
—Edited by Miguel R. Camus
