Pakistan International Airlines Corporation Ltd (PIA) announced its financial results for the nine months ended September 30, 2020.
The national carrier has reported an unconsolidated loss of Rs. 39.9 billion during the first nine months. The loss for the period was decreased by 5% as compared with the loss of Rs. 42.0 billion recorded in the same period last year due to the decline in foreign exchange losses and lower tax.
The PIA’s revenue dropped by 30.70% to Rs. 74.4 billion, from Rs. 107.3 billion recorded in the same period last year owing to the Covid-19 pandemic. Due to Covid-19, the national carrier could not sustain its earnings.
The company made a gross loss of Rs. 71 million as compared with a gross profit of Rs. 4.71 billion at the same time last year.
The administrative expenses of the airline fell to Rs. 4.52 billion during the nine-month period as compared with Rs. 4.99 billion in the corresponding period of the last fiscal year.
Loss from operations also surged to Rs. 8.7 billion from Rs. 4.9 billion. However, the exchange loss of the company declined by 34.75% to Rs. 7.6 billion from Rs. 11.7 billion due to the volatility in Rupee-Dollar parity while finance costs also showed a minor drop to Rs. 23.6 billion from Rs. 25.0 billion.
Some of the significant factors causing losses for PIA were flying to unprofitable destinations, overstaffing, union activity, and corruption. The national carrier had lost the crucial Umrah season and Hajj operations while flights to Europe were also suspended in the wake of a probe into the licenses of PIA pilots.
The company reported a loss per share of Rs. 7.61 as compared to a loss per share of Rs. 8.02 for the A-class ordinary shares of Rs. 10 each. For the B class ordinary shares of Rs. 5 each, the company reported a loss per share of Rs. 3.81 versus Rs. 4.01.