PIA Third Quarterly Report 2014

[Abbas Ali]

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


Source: PIA Corporate Reports

Post-tax loss of 20.86 billion rupees reported by PIA for first nine months of 2014.

Abbas

[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.
20.86 billion rupees loss (after tax) in first nine months of 2014.

Total: 218.37 billion rupees loss accumulated since 2005.

Abbas

[Amaad Lone]

PIA losses for first six months was 9.86 billion rupees. These losses jumped to 20.485 billion in nine months, meaning that last three months PIA lost nearly 10.5 billion rupees.

Revenues for the three months was 22.6 billion rupees.
The six month revenue figure before this 53.34 billion which included the non peak summer season. Now in peak summer season PIA should have earned a lot more then 22.6 billion, maybe around 28-30 billion. How come PIA revenues were lowest in the peak season as against the non peak months of the year.

The 11 billion PIA lost in three months, while the in the previous six months PIA lost 9 billion.

Fuel costs were 10.899 billion or 48% of revenue.

Finance charges 3.487 billion

Distribution and admin costs were 3.416 billion

Other cost of services was 12.55 billion.

The months of July, August and September show that PIA is not improving but sliding deeper into trouble.

The lack of capacity and routes while maintaining a labor force of 19000 employees has bled PIA to the level where recovery does not look possible.

How does a company that earns 22.6 billion in three months but spends 33.6 billion in the same period survive?????

[needroos]

The next couple of quarters could be interesting. Once the lower fuel costs make their ways into the accounts, that should help to lower the losses. But equally there may be pressure on PIA to cut fares as well.