Philippine Airlines has received a first-time Ba2 corporate family rating from Moody’s Ratings, with a stable outlook, in a move the airline said reflects its stronger financial position following restructuring.
Moody’s said the rating was supported by the carrier’s position as the Philippines’ flag carrier, its steady domestic and international market share, and what it described as a defensible long-haul franchise. The agency also cited an improved balance sheet and leaner cost structure following the airline’s 2021 Chapter 11 restructuring.
The stable outlook reflects Moody’s expectation that Philippine Airlines will maintain its market position while managing its fleet expansion plans in a way that keeps credit metrics consistent with the Ba2 rating.
Richard Nuttall, president of Philippine Airlines, said the rating validated progress made over the past five years in improving operational reliability, rebuilding the network and strengthening the airline’s cost and capital structure. He added that the rating would broaden access to funding sources.
Moody’s also pointed to challenges facing the airline, including exposure to global fuel price volatility, changes in travel demand and the demands of its fleet investment programme
The agency said Philippine Airlines could face indirect pressure from higher fuel costs linked to the conflict in the Middle East, but noted that the carrier had secured fuel supply through the end of June 2026, helping to reduce immediate risk after the Philippine government declared an energy emergency.
Philippine Airlines said the Ba2 rating places it three notches below the Philippine sovereign credit rating of Baa2. Deutsche Bank acted as the airline’s sole credit rating adviser.