PIA Posts Massive Loss of Rs. 38 Billion in Q1 2023

Pakistan International Airlines Corporation Limited (PSX: PIAA) has announced its financial results for the quarter that ended on 31 March 2023.

It has incurred a staggering loss after tax of Rs. 38 billion, increasing by 164.8 percent compared to a loss of around Rs. 14.3 billion in the same period last year, according to a filing at the Pakistan Stock Exchange (PSX).

According to PIAA’s consolidated results, its net revenue went up by 73.2 percent to Rs. 61.3 billion in January-March 2023 against Rs. 35.3 billion in the same period of last year. The cost of services soared to Rs. 54.6 billion, compared with Rs. 33.6 billion last year.

The airline reported a gross loss of Rs. 5.84 billion compared to Rs. 2.49 billion last year, up by 134 percent.

Administrative expenses increased to Rs. 4.3 billion from Rs. 2.8 billion, while the distribution costs went up by 42.9 percent to Rs. 1.99 billion compared to Rs. 1.39 billion during the first quarter of 2023. Fuel costs during the period had a massive 111 percent increase from Rs. 12.1 billion in January-March 2022 to Rs. 25.5 billion in the same period this year.

PIAA continues to suffer from liquidity issues that have increased borrowings and raised the finance cost by 79.5 percent to Rs. 17.4 billion from Rs. 9.72 billion in the quarter.

PIAA also reported a net exchange loss of Rs. 20.93 billion during the period in review.

The company reported a loss per share of Rs. 7.26 as compared to a loss per share of Rs. 2.74 for the A-class ordinary share of Rs. 10. each. For the B class ordinary shares of Rs. 5 each, it reported a loss per share of Rs. 3.63 versus Rs. 1.37.

At the time of filing this report, PIA’s scrip at the bourse was trading at Rs. 3.34, up by Rs. 0.04 or 1.21 percent, with a turnover of 105,000 shares on Thursday.