PIA holding’s half-year loss widens 76% to Rs25bn

August 28, 2026 (MLN): PIA Holding Company Limited (PSX: PIAHCLA) recorded a 76% increase in its consolidated net loss for the half year ended June 30, 2025, with net loss for the period widening to Rs25.39bn from Rs14.43bn in the corresponding period last year.

Showing this deterioration, loss per share attributable to A class ordinary shares of Rs10 each widened to Rs4.85 from Rs2.78 in 1HCY24, while loss per share attributable to B class ordinary shares of Rs5 each widened to Rs2.43 from Rs1.39.

The top-line underwent a dramatic structural change. Net revenue declined 89% to Rs25.71bn from Rs239.65bn in the prior period a contraction that shows the fundamental restructuring of the company's operations.

In the prior period, aircraft fuel costs of Rs75.59bn and other costs of Rs112.33bn were recorded as direct deductions, totaling Rs187.92bn in cost subtotals against the prior period revenue.

In the current period, no aircraft fuel cost was recorded, and other costs declined 92% to Rs9.32bn, bringing the cost subtotal to Rs9.32bn. As a result, gross profit fell 68% to Rs16.39bn from Rs51.74bn.

On the expenditure side, distribution costs declined 94% to Rs531.24m from Rs9.50bn, and administrative expenses fell 36% to Rs16.53bn.

Other expenses recorded no charge in the current year against Rs540.76m last year. Other income, however, surged to Rs18.03bn from Rs4.20bn a more than fourfold increase providing a significant cushion.

These combined movements brought the operating subtotal to Rs969.75m from a loss of Rs31.76bn last year, and profit from operations came in at Rs17.36bn, down 13% from Rs19.98bn.

Below the operating line, exchange loss narrowed 86% to Rs332.54m from Rs2.29bn. Finance cost declined 11% to Rs53.65bn from Rs60.23bn, though it remained the dominant burden on the earnings line. Loss from continued operations narrowed 14% to Rs36.62bn from Rs42.55bn.

A gain from discontinued operations of Rs18.45bn reversing a loss of Rs524.58m in the prior period provided a meaningful offset, pulling loss before levy and income tax down 58% to Rs18.17bn from Rs43.07bn.

Levy rose 37% to Rs2.11bn from Rs1.54bn, bringing loss before income tax to Rs20.28bn, still 55% narrower than the Rs44.61bn recorded last year.

The development that drove the overall net loss wider despite the improvement in pre-tax loss was a decisive adverse swing in the taxation line.

Against a tax credit of Rs30.18bn in the prior period which had significantly cushioned last year's net loss the company recorded a tax charge of Rs5.11bn in the current period.

This reversal of over Rs35bn in the tax line overwhelmed the pre-tax improvement and resulted in the net loss widening 76% to Rs25.39bn for the half year.

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