PIA Year 2020 Annual Financial Report

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Abbas Ali
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PIA Year 2020 Annual Financial Report

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PIA posts 34.6 billion rupees loss in 2020

KARACHI:
Pakistan International Airlines Corporation Limited (PIACL) announced loss for the year 2020 at PKR 34.6 billion and loss per share (LPS ) at PKR 3.31 for "B" class ordinary shares of PKR 5 each.

The loss stood reduced from PK 52.6 billion and LPS at PKR 5.02 suffered in 2019. Revenue went down to PKR 95 billion for 2020 from PKR 148 billion in year 2019.

Reduction in exchange loss, finance costs and growth in other income made the bottom-line appear better than the previous year.

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Abbas Ali
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Re: PIA Year 2020 Annual Financial Report

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Loss
Year 2020 34.6 billion rupees loss
Year 2019 52.6 billion rupees loss

Revenue
Year 2020 94.9 billion rupees revenue
Year 2019 147.5 billion rupees revenue

Aircraft Fuel Expenses
Year 2020 21.5 billion rupees aircraft fuel
Year 2019 50 billion rupees aircraft fuel

Administrative Expenses
Year 2020 5.7 billion rupees administrative expenses
Year 2019 6.2 billion rupees administrative expenses

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Amaad Lone
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Re: PIA Year 2020 Annual Financial Report

Post by Amaad Lone »

Year 2019

Loss 52.6 billion
Revenue 147.5 billion
Total Costs 200.1 billion

Year 2020

Loss 34.6 billion
Revenue 94.9 billion
Total Costs 129.5 billion

PIA costs fell by 70.6 billion rupees but fuel costs fell by 28.5 billion, what was the other 42 billion reduced costs??

Is it possible PIA just stopped paying its bills and that increased liabilities but since payments were not made losses were cut artificially.

for example not paying CAA, FBR, PSO and other big bills.
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Abbas Ali
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Re: PIA Year 2020 Annual Financial Report

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Total Losses reduced by 33.7%, nearly achieved Operational Break-Even

Karachi, 11 April 2021:
PIA has announced its financial results for Financial Year 2020 as it submitted audited accounts with the Pakistan Stock Exchange (PSX). What has been termed as one of the worst year in decades for the global aviation industry whereby even largest players in the market have obtained huge bailout packages from their respective governments to stay afloat, PIA came up with a noteworthy performance, nearly breaking even on operational losses and reducing its overall losses by 33.7%.

According to the airline’s audited financial results for the year 2020, PIA reduced its operational losses from PKR 6.130 Billion in 2019 to less than PKR 680 million in 2020, which would have been easily covered if revenue streams had not also fallen by nearly 35.7%. PIA achieved revenue of PKR 94.989 Billion, down from PKR 147 Billion achieved in 2019, the main reason for which was COVID restrictions affecting all of PIA’s routes, reducing the overall operations by nearly half.

The pandemic which hit the industry in March 2020, saw nearly halting of all the operations, domestic and international for months, which only started to resume partially from July onwards. However, July also saw the European Union Aviation Safety Agency (EASA) ban imposed on PIA which hit one of the biggest routes of UK and Europe.

The bread winning operations of Umrah & Hajj flights also impacted the revenues of PIA. PIA responded by focusing on special charter flights, repatriation and relief flights which helped it retain its foothold in the market and generate valuable revenue from alternative sources, which made the COVID and ban related bite on revenues much milder, than initially predicted. Special charters for National Disaster Management Authority (NDMA) and Pakistan Army helped the nation to retain valuable foreign exchange within the country.

During the year 2020, PIA oversaw a number of reforms such as cutting down of loss making units such as Speedex and curtailing on loss making routes and cost reductions without compromising on service reliability and standards. PIA thus is strictly adhering to the path of recovery it devised for itself which saw year 2019 tackling the governance issues and plugging revenues leakages, 2020 as consolidation and planned operational break even for the year 2021.

The airline management also re-negotiated with financial institutions for rescheduling of loans and also re-negotiated the lease payments of high lease aircraft that were acquired in the past. PIA also undertook a Voluntary Separation Scheme (VSS) accepted by nearly 2,000 which will have considerable impact on the expense of 2021.

CEO PIA Air Marshal Arshad expressed his satisfaction on the financial results and acknowledged the team effort put forth by PIA and the supported extended to it by all the stake holders, including the Government of Pakistan. He said that PIA is making all efforts to face and cope up with COVID scenario and though the outlook remains challenging in 2021 as well, it is hoped that with the support of Government of Pakistan, our Pakistani customers and dedication of PIA employees, we will emerge stronger than before.

The testing times shall soon be over and the strength acquired by PIA with the reforms, restructuring and financial discipline will bear fruit in the near future.

Source: PIA Press Release
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Re: PIA Year 2020 Annual Financial Report

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PIA year 2020 annual financial report now available on airline's official website.

PIA suffered post-tax loss of 34.64 billion rupees in year 2020.

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Amaad Lone
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Re: PIA Year 2020 Annual Financial Report

Post by Amaad Lone »

PIA loss of 35.354 billion rupees is 84% finance cost paid to banks on its massive 400 billion rupee debt and 14% is currency losses due to rupee depreciation.

In 2021 the rupee has appreciated from 168 to 153 per dollar so the exchange rate losses should reverse.

But the finance costs will remain the same or will increase as debt continues to increase.

PIA other income rose to 11.235 billion rupees from 2.102 billion. What is this OTHER INCOME???

If government takes over PIA debt and the hotels, PIA might actually become profitable.
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Re: PIA Year 2020 Annual Financial Report

Post by Amaad Lone »

Preparing for the time when restrictions are lifted PIA should return the three leased 777s and instead get 787-900, or A330-900 for UK flights.

Competing with Virgin and BA with their old 777s is not going to work.
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