PIA Records Gross Profit For First Time in Eight Years
PIA announced their financial report for the year 2019 - this is the first time the airlines has been able to generate gross profit in the past eight years.
Pakistan International Airlines (PIA) announced their financial report for the year 2019, during which they recorded a 43% increase in their revenues. The report was submitted to the Securities Exchange Commission Pakistan (SECP) and Pakistan Stock Exchange (PSX) on May 18. This is the first time PIA has been able to generate gross profit in the past eight years.
From 2018 to 2019, the annual revenue increased from Rs 103.5 billion to Rs 147.5 billion. The operating loss during this time period had been reduced by 76%. In comparison to 2018, the loss before interest and taxation was also reduced by 59%. The airlines was also able to service more than Rs 19 billion of its debt.
The gross profit for the financial year 2019 was reported to be Rs 7.8 billion, whereas in 2018 it had been a gross loss of Rs 19.7 billion.
This success is attributed to routes optimization, fares rationalization, enhancement of ancillary revenue in double digits while undertaking stringent cost discipline in all aspects of the business. PIA had been managing a stead supply chain for the spares, as well as upkeeping the inventory for maintenance.
PIA CEO COMMENTS ON THE GROSS PROFIT AND PERFORMANCE
PIA’s CEO Air Marshal Arshad Malik appreciated the employees’ contribution towards recording gross profit for the first time in eight years. Furthermore, he especially acknowledged the airline’s finance team for completing the audit of the years 2017, 2018 and 2019.
Air Marshal Arshad Malik also expressed his gratitude to Prime Minister Imran Khan and the Minister for Aviation Ghulam Sarwar Khan for supporting PIA.
In regards to the COVID-19 pandemic, he commented:
“The year 2020 is very challenging for the aviation industry keeping in view the Covid-19 pandemic. Extra efforts will be required and tough decisions will be taken for the betterment of the airline.”
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