PIA annual report shows record increase in revenue
In a remarkable exhibit of performance, PIA has announced its financial results for the year 2019, after approval of its board and submitted with SECP and Pakistan Stock Exchange.
PIA earned revenue surged to Rs 148 billion for the year 2019 as compared to Rs 103.5 billion in 2018 showing a magnanimous growth of 43% in 2019 (in a single year) while the Operating Loss was significantly reduced by 76% in 2019 as compared to last year (2018). The Loss before Interest & Taxation was also reduced by 59% as compared to 2018.
For the first time in eight years, PIA has been able to achieve gross profit of Rs. 7.8 billion versus gross loss of Rs.19.7 billion in 2018.
When current leadership of Air Marshal Arshad Malik joined in 2018-2019, the audits for two consecutive financial years 2017 & 2018 were pending. The management initiated action to complete audits for first 2017 (announced in Sep 19) and then of 2018 (announced in Dec 19) followed by their respective AGMS and now after completion of 2019 Audit, PIAs financial results are now up to date and within SECP stipulated guidelines. Managing three full-year audits in a matter of months without any qualifications from the auditors undertook phenomenal efforts by PIA team.
The salient features of financial results for the year 2019 are attributed mainly due to routes optimization & fares rationalization, enhancement of ancillary revenue by double digits while undertaking stringent cost discipline in all aspects of the business.
The grounded fleet was made fly worthy again while managing a steady supply chain for the spares and another inventory for the maintenance and upkeep of the aircraft was also a hallmark of 2019 performance. Additionally, PIA serviced more than 19 billion of its loans also with 2019.
PIA's Seat Factor in 2019 was remarkable and stood at 81 percent witnessing an improvement of 4 percentage points as compared to 2018 meeting industry-best scale.
Sharing his views of the completion and submission of financial results for the year 2019, CEO PIA, Air Marshal Arshad Malik appreciated PIA employees and their contribution towards these noteworthy results and especially appreciated the efforts of Finance team for completion of the financial audits for three years and in particular the audit results for the year 2019. He thanked Prime Minister of Pakistan Imran Khan and Minister for Aviation Ghulam Sarwar Khan for their support to PIA.
CEO PIA said that the current year 2020 is very a challenging year for the aviation industry keeping in view the Covid-19 pandemic. He said that extra efforts would be required and tough decisions would be taken for the betterment of the airline.
Minister for Aviation has also congratulated PIA management on the encouraging performance and vowed his support in all the current and future initiatives undertaken by the PIA team to reform the airline. He reiterated that his ministry and the Government of Pakistan will fully back PIA for its revival.