MANILA, Philippines — Philippine Airlines has called on its employees to apply for voluntary separation as part of a retrenchment plan that may affect up to 35% of its 7,000 workers.

PAL said it resorted to furloughs and flexible working arrangements at the height of the pandemic to preserve jobs. But it is operating only 15% of its normal flights and says collapsing demand and ongoing travel restrictions make retrenchment inevitable.

The retrenchments would involve voluntary and mandatory steps to be carried out in the remaining months of the year, PAL said. It assured employees of fair treatment.

PAL, one of Asia’s oldest commercial airlines, is among the largest Philippine companies reeling from COVID-19. The disease has infected nearly 325,000 Filipinos, the highest number in Southeast Asia, and caused 5,840 deaths.