PIA posts unconsolidated financial results, states it faced a loss of Rs. 67 Billion in 2018
The amount saw a 32% increase compared to the past year 2017, where the figure stood at Rs. 51.00 billion.
After quite a delay, Pakistan International Airline (PIA) has finally disclosed its financial result for the financial year that ended on December 31, 2018. The announcement was delayed because of auditors of Pakistan International Airlines (PIA) refusing to validate financial statements because of the missing records.
PIA has displayed losses of Rs. 67.32 billion in 2018. The amount saw a 32% increase compared to the past year 2017, where the figures stood at Rs. 51.00 billion.
However, it must be mentioned that a revenue increase was also noticed in the said period. Revenues increased by 14.30%, increasing from Rs. 90.55 billion in 2017 to Rs. 103.49 billion in 2018. PIA managed to increase its revenue for the year but because it came at a cost of services, the gross losses were recorded at Rs. 19.73 billion, 14.60 % higher than in 2017.
The company reported a massive increase of 586% in exchange losses in 2018. They were reported at Rs. 14.95 billion as compared to Rs. 2.18 billion in 2017, likely due to the rupee’s depreciation against the US dollar in the period.
The finance costs of the company also increased to Rs. 20.38 billion, up by 33.73% as compared with Rs. 15.24 recorded in 2017 due to an increase in interest rates in the country.
Apart from it, the basic expenses also dramatically increased. Fuel price alone surged by 43.76% over the past year, increasing to Rs. 43.55 billion from Rs. 30.94 billion.
PIA also reported Rs. 12.86 loss per share, compared to the loss per share of Rs.9.74 for the A-class ordinary shares of Rs. 10. each. For B class ordinary shares, the company reported a loss of Rs. 6.43 against Rs. 4.87.
Pakistan International Airlines (PIA) Chief Executive Officer, Air Marshal Arshad Mahmood Malik previously said that the monthly operational losses of the national carrier have been reduced to Rs. 1.5 billion, which were Rs. 3 billion in the past.
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