PIA losses down by 83 per cent in 2009

KARACHI: Pakistan International Airlines (PIA) losses dropped by 83 per cent in the financial year 2009 due to lower fuel costs, higher revenues and a steady rupee. PIA’s financial losses after tax decreased to Rs5.82 billion in 2009 from Rs36.14 billion in 2008.

The airline’s financial results were discussed in the 53rd Annual General Meeting held on Saturday. “The most significant decline had been in our fuel costs which went down to Rs31 billion in 2009 compared to Rs45 billion in 2008, which helped us considerably,” said PIA Managing Director Aijaz Haroon. The airline’s revenues increased by 6.4 per cent to Rs94 billion in 2009 against Rs88 billion the previous year. He said a stable currency also helped limit the disparity that the rupee has with the dollar.

The drain caused by the depreciation of the rupee was lower by 72.14 per cent and limited to just Rs6.711 billion in 2009. This had been Rs24.118 billion in the previous year, said Haroon. PIA’s yield was up by seven per cent and the excess baggage revenue target of Rs1 billion was surpassed by Rs45 million. PIA also achieved an operating profit of Rs2.84 billion for the year 2009 after four years of operating losses. The operating loss for the year 2008 was Rs7.3 billion.

The airline also continued to reap the benefits of CF6-80C2 overhaul initiated in 2008, which saved $20 million during the year. In his address to the shareholders, Haroon said that 2009 proved to be a challenging year for the national flag carrier as the global recession continued widening the financial crisis. “Globally, airlines have recorded dips in passenger loads, cargo loads and yields,” he said. Higher inflation in the country also exerted pressure on the cost structure of the airline, he added.