PIA incurs Rs75b loss in nine months

In Local
April 08, 2024



ISLAMABAD:

Pakistan International Airlines (PIA) achieved a significant milestone in its financial performance for the nine months ending January to September 2023, according to an audited report.

During this period, PIA reported a remarkable increase in revenue, soaring to Rs186 billion. This marked a substantial rise of Rs14 billion compared to the corresponding period in 2022, demonstrating growth despite challenges.

Despite the surge in revenue, PIA faced a loss of Rs75 billion throughout the nine months of 2023. However, this figure reflects a notable improvement from the previous year, with a decrease of Rs12 billion in losses compared to 2022.

Read more: PIA offers 20% discount to Umrah pilgrims

A significant portion of PIA’s expenditure during this period was allocated to aircraft fuel, totalling Rs 91 billion. Meanwhile, administrative expenses experienced a slight decrease, amounting to Rs6.5 billion, down from Rs6.35 billion in the same period of 2022.

The audited report for the nine months ending September 2023 has been submitted to the Securities and Exchange Commission of Pakistan (SECP), indicating transparency and adherence to regulatory requirements by the national airline.

Casting the net wide for international investors

Meanwhile, as the national carrier moves forward with its privatisation agenda, financial advisors have been diligently reaching out to potential investors worldwide, with a particular focus on key players from Qatar, Abu Dhabi, and Saudi Arabia.

In a bid to entice foreign investment, these advisors have been conducting detailed briefings, highlighting the lucrative opportunities presented by PIA’s privatisation.

Sources familiar with the matter indicate that financial advisors are actively engaging with global investors to attract interest in the privatisation endeavour.

Also read: Rs30b net worth set for PIA buyers

In these briefings, investors are being apprised of the potential benefits of acquiring stakes in PIA, including insights into the airline’s international routes and profit margins.

Furthermore, a separate briefing has been meticulously prepared to outline the prospects of PIA’s expansion and profitability under private ownership.

Addressing concerns regarding the complexities surrounding PIA’s financial standing, sources suggest that the losses, liabilities, and debts of PIA have been transferred to a holding company, thereby streamlining the privatisation process and mitigating risks for potential investors.

The outreach efforts by financial advisers are set to continue as part of a comprehensive roadshow campaign until May 3.

Privatisation Minister Aleem Khan has also been actively involved, providing firsthand briefings to investors regarding the potential opportunities associated with PIA’s privatisation.

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