According to a filing at the Pakistan Stock Exchange (PSX), Pakistan International Airlines (PIA) has suffered a stunning loss of Rs 43.48 billion, which is an increase of 64% from a loss of roughly Rs 26.53 billion in the same period previous year.
In comparison to the same period last year, the PIAC’s net revenue increased by 160 percent to Rs. 73.89 billion in January–June 2022 from Rs. 28.33 billion. In contrast to previous year, when the cost of services was only Rs. 37.25 billion, it now totals Rs. 76.49 billion.
The airline reported a gross profit of Rs. 2.6 billion, a sharp decline of 71 percent from the previous year’s total profit of Rs. 8.92 billion.
Read more: Five year plan proposed to bring PIA to profitability by 2024
In the first half of 2022, distribution costs rose by 34% to Rs. 3.13 billion from Rs. 2.33 billion, while administrative expenses of PIA jumped to Rs 5.708 billion from Rs 4.91 billion. The price of fuel increased dramatically over that time, jumping from Rs 7.63 billion in January–June 2021 to Rs 30.57 billion in the same period this year.
As a result of increased borrowing and higher finance costs (up from Rs. 12.18 billion in the half year to Rs. 21.70 billion now), PIA is still experiencing liquidity problems. A rise in interest rates also contributed to this increase.
The loss per share reported by the corporation was Rs. 8.31 as opposed to Rs. 5.07 for the A-class ordinary share of Rs. 10 per share. It reported a loss per share of Rs. 4.16 as opposed to Rs. 2.54 for the B class ordinary shares of Rs. 5 each.
On June 30, 2022, Pakistan International Airlines Corporation Limited (PIACL) has released its financial results.
