PIA 2015 First Quarter Financial Result

[Abbas Ali]

KARACHI: The Pakistan International Airlines (PIA) has earned a gross operating profit of Rs2.83 billion in the first quarter of 2015 as against a gross operating loss of Rs3.93 billion in the first quarter of 2014, a company statement said on Wednesday.

With the inclusion of fuel efficient, narrow body aircraft, the airline’s operations improved, enabling efficiency and better control on fuel cost. The combined effect of downward trend in fuel prices and the impact of replacement of aging fleet with fuel efficient aircraft resulted in almost 49 percent decline in the fuel cost against the corresponding period last year. The airline is in the process of increasing the capacity by inducting more narrow body aircraft. Five ATRs and two wide body aircraft on dry lease had already been initiated through a transparent and competitive bidding process.

Source: The News

[Abbas Ali]

PIA suffered post-tax loss of 1.94 billion rupees in the first quarter of year 2015 (January - February - March).


Source: PIA

Summary of losses suffered by PIA from 2005 to first quarter of 2015.

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.
32.22 billion rupees loss (after tax) in year 2014.
1.94 billion rupees loss (after tax) in first quarter of year 2015.

Total: 231.67 billion rupees loss accumulated since 2005.

Abbas

[ammad]

All indicators are pretty alarming. This time loss is less due to reduced fuel cost from from 14.73 to 7.55 billion comparing from 2014 to 2015 which actually mitigate the loss other wise pathetic financial performance is still happening. Also despite very much increase of Air travel in the region Net revenue is plunging and PIA is still happy that they are making losses but less losses compare to yesteryears. What a performance benchmark to live with.

[Abbas Ali]

Payment of interest on loans caused Rs1.94 bn loss: PIA

Fakhar Durrani
Tuesday, September 22, 2015

ISLAMABAD: The Pakistan International Airlines (PIA) claims that it earned Rs2.83 billion gross profit during the first quarter of the current year; however, an official report suggests it is mere eyewash, as the gross profit shown in record is because of 50 percent reduction in fuel cost compared to the previous year after grounding some planes.

Last week, the top management told the media that the airlines had earned Rs2.83 billion gross profit during the first quarter of 2015; however, the same report shows that the airlines faced Rs1.94 billion net loss at the end of the quarter whereas the net revenue decreased from Rs27.96 billion to Rs25.88 billion.

The management further claimed that their revenue increased by 6 percent compared to last year.

The first quarter report shows that the airlines generated Rs25.88 billion net revenue. However, during the first quarter of previous year the net revenue was Rs27.96 billion which means the airlines generated Rs2.08 billion less revenues than the previous year in the same period.

Similarly, the report further shows that the airlines spent Rs7.55 billion on fuel cost whereas last year during the same period it spent double than the current year i.e. Rs14.73 billion.

This means the airlines had to face a huge loss had there been more money spent on fuel cost, as more than 50 percent of fuel cost was saved because the PIA had grounded some planes this year.

The report says at the end of the first fiscal quarter of 2015, the PIA had to bear Rs1.94 billion loss after taxation whereas last year even after paying Rs14.73 billion for fuel as compared to Rs7.55 billion this year, the airlines loss was recorded at Rs1.98 billion.

It is pertinent to mention here that the Aviation Division spokesman Sher Ali Khan with other authorities addressed a press briefing last week informing that efforts made by the prime minister’s special assistant on aviation had made the recovery possible.

He said in 2014-15 the national carrier reduced its loss by 37 per cent. Mr. Khan said in 2013-14 the loss before tax suffered by the PIA stood at Rs27.45bn which was reduced to Rs8.62bn in 2014-15.

When contacted, the top management of PIA said after a very long period they earned gross operating profit which was a good sign for the national flag career.

The management replied that it was a fact that at the end of the first quarter the PIA faced Rs1.94 billion loss but gross operating profit was also considered as profit.

When asked whether it was a fact that PIA’s net revenues decreased by Rs2.08 billion as compared to previous year during this period, the management replied that it was a fact but there could be many reasons. However, the management further replied that for the first time the current management had reduced many administrative expenditures and generated gross profit.

The management further replied that because of paying a huge amount of interest on loans the PIA had to face net loss otherwise because of effective measures and strong management skills the company’s financial condition is improving.

Source: The News