Pakistan International Airlines (PIA) has finally announced its consolidated financial results for the year ending on December 31, 2019.
The national carrier has reported a staggering loss of Rs. 56.03 billion in 2019, showing a decline of 16% over the previous year. It had reported a loss of Rs. 66.65 billion in 2018, according to the notification to the Pakistan Stock Exchange.
The losses remained Rs. 10.62 billion less than the year 2018.
The major reason behind PIA’s losses during 2019 was the increased financial cost due to the inherited loans, rising markups, and debt servicing besides a significant increase in fuel prices and devaluation of the currency.
However, sales for the mentioned period were Rs. 164.64 billion, translating into a 40% increase from as compared to Rs. 117.98 billion in 2018. The company managed to increase its revenue for 2019 but it was the rise in the cost of services by 14.50% to Rs. 151.99 billion that led to gross losses of Rs. 12.64 billion, which were 14.60% less than the Rs. 14.80 billion losses recorded in 2018.
Basic expenses like cost fuel increased by 15% over the year to Rs. 50.05 billion from Rs. 43.55 billion due to the increase in oil prices during 2019.
The company reported a decrease of 21.6% in exchange losses in 2019. They were reported at Rs. 11.69 billion as compared to Rs. 14.91 billion in 2018. The finance costs of the company soared to Rs. 36.37 billion, up by a massive 70% as compared with Rs. 21.10 recorded in 2018 due to an increase in interest rates in the country.
Administrative expenses increased to Rs. 11.30 billion from Rs. 10.47 billion. Other income saw an increase of 22.40% to Rs. 2.46 billion as compared to Rs. 2.01 billion in the same period last year.
PIA’s loss from operations decreased by 74.64% to Rs. 8.00 billion as compared to Rs. 31.55 billion in 2018.
The company reported a loss per share of Rs. 10.69 as compared to a loss per share of Rs.12.77 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. 5.35 against Rs. 6.37.