Pakistan International Airlines announced its financial results for the half-year ended June 30, 2021.
The national flag carrier of Pakistan has incurred a net loss of Rs. 25 billion, decreasing the loss by almost 31.5 percent compared with a loss of Rs. 36.53 billion in the same period last year, according to a filing at the PSX.
PIA’s net revenue went down by 46.41 percent to Rs. 27.6 billion in January-June 2021 against Rs. 51.5 billion in the same period of last year. The cost of services fell to Rs. 36.84 billion, compared with Rs. 55.70 billion last year.
The airline reported a gross loss of Rs. 9.20 billion as compared to a gross loss of Rs. 4.23 billion, increasing by 117.50 percent, due to lower sales.
According to the company’s spokesperson, the prime reason behind the drop in revenue was the suspension of flights to major international destinations.
Administrative expenses decreased to Rs. 2.59 billion from Rs. 3.09 billion. Whereas the distribution costs also saw a decline of 22.15 percent to Rs. 2.18 billion compared to Rs. 2.80 billion during the first half of 2021.
A decrease in distribution, administrative and finance costs helped cut the losses. PIA also reported an exchange gain of Rs. 1.32 billion as compared to an exchange loss of Rs. 9.73 billion.
The company reported a loss per share of Rs. 4.78 as compared to a loss per share of Rs. 6.98 for the A-class ordinary share of Rs. 10. each. For the B class ordinary share of Rs. 5 each, the company reported a loss per share of Rs. 2.39 versus Rs. 3.49.
PIA found itself at the receiving end of flight bans in several countries in 2020, after allegations of fake licenses against PIA pilots came to light. The airline is still banned from flying into the EU due to safety concerns.