PIA Financial Report for 2014 Second Quarter

[Abbas Ali]

PIA shows Rs8.1bn loss for second quarter

KARACHI: Pakistan International Airlines Corporation (PIA), the national flag carrier with Rs129 billion in total assets, posted loss of Rs10.1bn for the six months ended June 30, 2014 on its unconsolidated condensed interim profit and loss account.

Although deep in deficit, the loss decreased by 45pc from Rs18.4bn suffered in the corresponding six months of 2013. The airline turned out gross profit at Rs339m for the latest six months from loss of Rs2.6bn last year.

Yet, a deeper analysis shows that “exchange gain” of Rs5.2bn in six months 2014, in place of “exchange loss” of Rs1.5bn YoY, helped turn the results around. Against the paid-up capital of Rs28.8bn and reserves of Rs4.4bn, PIA carries accumulated loss amounting to Rs208bn on its balance sheet.

For quarter ended June 30, 2014, PIA showed loss of Rs8.1bn, down from loss of Rs9.8bn YoY, while revenue increased to Rs25.4bn, from Rs22.7bn. Exchange loss decreased to Rs370m for 2Q2014, from Rs463m same time last year.

However, the bottom-line for the 2Q2014 was bruised by sharp decline in ‘other income’ to Rs128m, from Rs1.2bn in same quarter 2013.

Source: DAWN

[Abbas Ali]

Summary of losses suffered by PIA since 2005.

4.41 billion rupees loss (after tax) in year 2005.
12.76 billion rupees loss (after tax) in year 2006.
13.39 billion rupees loss (after tax) in year 2007.
35.88 billion rupees loss (after tax) in year 2008.
5.82 billion rupees loss (after tax) in year 2009.
20.78 billion rupees loss (after tax) in year 2010.
26.76 billion rupees loss (after tax) in year 2011.
33.18 billion rupees loss (after tax) in year 2012.
44.53 billion rupees loss (after tax) in year 2013.
1.98 billion rupees loss (after tax) in first quarter of year 2014.
8.1 billion rupees loss (after tax) in second quarter of year 2014.

Total: 207.59 billion rupees loss accumulated since 2005.

Abbas

[Abbas Ali]

PIA Restricts Loss to Rs. 10.1 Billion in First Six Months of 2014

Karachi, September 24, 2014: PIA steadfastly is continuing on path of recovery as during last six months the revenue increased by Rs. 6 billion or 12% to Rs. 53.4 billion as against Rs. 47.6 billion during the first six months of 2013. PIA also earned a gross profit of Rs. 339m whereas the decline in operational losses stood at 80% to Rs.2.5 billion and 45% reduction in loss after tax to Rs.10 billion compared with Rs.18.4 billion in the corresponding period of 2013. This was told in PIA’s 359th Board of Directors meeting which was held at airlines' head office. Chairman PIA Muhammad Ali Gardezi chaired the meeting. Managing Director Shahnawaz Rehman was also present in the meeting.

The board was informed that during the first six months of 2014, the airline managed to restrict loss to 10.1 billion which is Rs. 8.25 billion less as compared to the corresponding period of year 2013. Main reasons for reduction in loss were due to higher revenue and controlled expenditure.

Board was informed about customer services improvement initiatives and aircraft being inducted as part of future strategy. Issues relating to performance improvement and efficiency especially focusing on customer satisfaction were discussed and various recommendations were approved.

The board appreciated PIA management’s performance in curtailing expenses while emphasizing on further increase in revenues and cost curtailment measures. The board reviewed the constraints faced by the airline in particular aircraft induction, repairs and maintenance and spare parts availability and instructed PIA management to devise a comprehensive future strategy.

Source: PIA Press Release (September 24, 2014)

[Abbas Ali]

Summary of PIA financial result for first six months of 2014.


Source: PIA

Abbas