- Revenue stagnates as many routes stand closed, Competition kicks in
- Company still in Operating Loss as Gross Margins remain negative
- Ageing fleet, Higher Staff ratio and inability to increase its routes leading to loss
The Pakistan International Airlines (PIA) Corporation Limited announced its Annual Result for the Year 2017 with depressing figures posting Net loss of Rs.47.73 billion during the year.
2017 Net loss was 7% higher than the previous year’s loss Rs. 44.75 billion as reported in PIA Annual Report 2017.
Stagnant Revenue and Operating Performance
Financial Statement for 2017 reveals that PIA’s revenue marginally increased by 1.7% to Rs. 104.19 billion as compared to Rs. 102.4 billion in 2016. While PIA incurred an operating loss of Rs. 31.13 billion compared to Rs. 31.2 billion in 2016.
Gross Loss of the Airline increased to 12% as compared to 9.8% last year.
Success in reducing Overhead Cost
PIA was successful in reducing its overhead costs as its Other Expenses(excluding FX Losses) decreased to Rs. 16.3 billion as compared to Rs. 20.88 billion in 2016, marking a 22% reduction in Overhead costs.
However, a huge Foreign Exchange Losses of Rs. 2.23 billion on Fuel procurement, Inventory and Debt led Other Expenses to equal that of last year.