PIA revenues rise 12.5%

Overall financial position mainly affected by fuel prices.


Express May 04, 2011

LAHORE:


Pakistan International Airlines (PIA) achieved revenues of around Rs107.5 billion during 2010 compared to Rs95.56 billion in 2009, recording a growth of 12.52 per cent, say airline officials.


In an annual general meeting of PIA on Tuesday, officials said the airline had also registered an increase in seat factor from 70 per cent in 2009 to 74 per cent in 2010 and earned an operating profit of Rs720 million.

However, the meeting was told that the overall financial position was mainly affected by fuel prices, which rose from Rs149.39 per gallon in 2009 to Rs194.57 in 2010. Fuel cost constitutes 42 per cent of the airline’s operating cost.

Operating expenses, other than fuel, decreased by 3.88 per cent because of a fall of Rs4.41 billion in exchange loss over the previous year due to a stable rupee.

PIA Managing Director Nadeem Khan Yousufzai, speaking to shareholders, said that following the changing political conditions in the Middle East, oil prices had started climbing again which was affecting the aviation industry’s return to profitability.

Published in The Express Tribune, May 4th, 2011.

COMMENTS (1)

Salman | 12 years ago | Reply by charging 30 % more on air tickets???? Is it what we call management?
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