Philippine Airlines Inc. has filed for Chapter 11 bankruptcy protection in the United States after prolonged travel restrictions due to the coronavirus pandemic caused a sharp fall in air travel demand.

The flag carrier of the Philippines said Friday it will undergo financial restructuring while continuing to operate its flights.

A Philippine Airlines aircraft takes off from Chubu airport in Aichi Prefecture, central Japan, on June 17, 2020. (Kyodo)

The restructuring plan, which is subject to court approval, will provide the airline with over $2 billion in payment reductions, it said in a statement.

Chairman and CEO Lucio Tan said the plan empowers the airline to "overcome the unprecedented impact of the global pandemic that has significantly disrupted businesses in all sectors, especially aviation."

The airline announced in February a 30 percent cut of its workforce or some 2,300 employees.

In May last year, Thailand's flag carrier Thai Airways International PLC filed for bankruptcy.