PIA’s annual losses expand by 31%

MG News | November 22, 2019 at 11:39 AM GMT+05:00

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November 22, 2019 (MLN): Pakistan International Airlines Corporation Limited (PIAA) has incurred losses of Rs. 66.8 billion for the year ended December 30, 2018, which is nearly 31% greater as compared to the losses of the previous year.

While the company managed to increase its net revenue by 13.56%, it was the rise in the cost of services by 13.87% that led to gross losses of Rs. 14.9 billion, i.e. 16% higher than that of the previous year.

Furthermore, the Distribution cost and Administrative expense both jumped by 15% and 13% respectively, causing further strain on the already disheveled financial position of the company. On top of that, Exchange losses demonstrated a 5.7x increase whereas finance costs rose by 34%.

Earlier, the Chief Executive Officer of PIA, Air Marshal Arshad Mahmood Malik had claimed that the monthly operational losses of PIA had been reduced to Rs. 1.5 billion as compared to more than Rs. 3 billion suffered by the airline every month. He accredited this curtailment in losses to the PIA team, who according to him, had put in a tremendous amount of effort to revive the national flag carrier.

Profit and Loss Account for the year ended December 31, 2018 ('000 Rupees)
	Dec-18	Dec-17	% Change
Revenue - net	118,001,881	103,911,181	13.56%
Cost of services
Aircraft fuel	(43,552,360)	(30,940,544)	40.76%
Others	(89,426,277)	(85,843,907)	4.17%
	(132,978,637)	(116,784,451)	13.87%
Gross loss	(14,976,756)	(12,873,270)	16.34%
Distribution cost	(6,340,848)	(5,493,562)	15.42%
Administrative expenses	(10,474,566)	(9,216,245)	13.65%
Other provisions and adjustments	(1,942,072)	(6,393,474)	-69.62%
Exchange loss - net	(14,911,659)	(2,203,396)	576.76%
Other income	2,014,326	748,788	169.01%
Loss from operations	(46,631,575)	(35,431,159)	31.61%
Finance costs	(21,130,976)	(15,781,979)	33.89%
Share of loss in an associate	(572)	(2,034)	-71.88%
Loss before taxation	(67,763,123)	(51,215,172)	32.31%
Taxation	935,130	231,351	304.20%
Loss for the year	(66,827,993)	(50,983,821)	31.08%
Loss per share - A class ordinary shares	(12.77)	(9.12)	40.02%
Loss per share - A class ordinary shares	(6.38)	(4.56)	39.91%

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