The Philippine Airlines, Inc. (PAL), led by the Lucio Tan group, is raising an extra $50 million to support its fleet modernization efforts and expand its international flight network. Through its fully owned subsidiary Primero Agila Limited, the airline has successfully priced an additional offering of its 7.75 percent senior notes due 2031, growing the total size of this bond issue to $350 million from the original $300 million released on July 16, 2026. Priced on July 31, 2026, the new tranche will be settled on August 6, 2026, priced at 99.000 plus accrued interest calculated from the original issue date, translating to a yield of 7.997 percent while keeping the fixed annual interest rate at 7.75 percent. These additional notes will be combined with the original bonds as one single series and carry the same terms, with full and unconditional backing from both Philippine Airlines and Air Philippines Corporation to strengthen investor protection, and will be listed on the Singapore Exchange.
This top-up offering comes just weeks after PAL completed its initial $300 million bond sale earlier in July, and is designed to boost the airline’s financial standing while attracting a wider range of investors to its debt instruments. The fresh funds will go toward a major fleet upgrade that includes firm orders for 15 Boeing 787-10 Dreamliners and nine Airbus A350-1000 aircraft, with options to add five more of each type. Deliveries are set to roll out between 2031 and 2036, paving the way for a steady renewal and expansion of PAL’s long-range fleet.
Strong financial results have backed the airline’s expansion plans, with PAL reporting a first-quarter 2026 net income of $78.77 million, a 2.6 percent rise year-on-year, alongside total revenue of $895.70 million, marking a 9.7 percent increase from the same period in 2025. The airline also earned top industry recognition last year, when global aviation analytics firm Cirium ranked it the most on-time airline across the Asia-Pacific region in 2025. Today, PAL operates a mixed fleet of Boeing, Airbus, and De Havilland aircraft, running scheduled nonstop services from its main hubs in Manila, Cebu, Clark, and Davao to 30 domestic destinations and 41 international points spanning Asia, North America, Australia, and the Middle East.
