For the first time in years, the national flag carrier Pakistan International Airlines (PIA) has been successfully able to overcome losses and reach break-even on operational losses.
“PIA has achieved breakeven at the operational level. It, however, may take three to four years to report a net profit” – said PIA CEO Air Vice Marshal Noor Abbas, while speaking to a local news source.
It was further revealed that the revenue was elevated to 8-8.5 billion a month during the third quarter (January-March) compared to Rs 7 billion during the corresponding period last year. Seat occupancy rate per flight during the period under review increased to around 90%, which stood at 70% during the same period last year.
“The good news is that our operating cost was slightly lower than the monthly revenue or was almost equal” – he added.
He added that long and consistent efforts have lead to this improvement. He lauded the changes they made on the organizational level.
”There are various factors which led to the financial improvement besides this. We have added four planes to the fleet after a repair, reduced the number of employees, decreased the ticket reservation cost increased the load factor of cargo.” – he added.
One significant factor that has contributed to the improved results is the increased confidence of people and them buying more tickets as the new government has been vocal in supporting ‘Pakistan made’.
The advisor also gave credit to the new management under Air Marshal Arshad Malik for the remarkable change.
“PIA is doing well under the five-year business plan, which got an approval of the cabinet very recently.” – he said.
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