PIA suffers deficit of Rs 543m in 4th quarter of 2005

[Abbas Ali]

ISLAMABAD: Pakistan International Airlines (PIA) suffered a deficit to the tune of Rs 543 million in the 4th quarter of the year 2005 as it generated Rs Rs. 19, 688 million against the total expenditure Rs Rs. 20, 231 million surpassing the expenditure target of Rs. 16, 270 million.

PIA generated Rs. 19, 688 million, and revenue showing a remarkable increase of 17.7 percent over the target of Rs.16, 731 million set for the total revenue. This increase was mainly due to increase in Revenue Passenger Kilometer (RPKs) for the quarter over target.

Total expenditure was Rs.20, 231 million against the target of Rs.16, 270 million. The increase of 24.34 percent in expenditure was mainly due to sharp increase in fuel cost. The Corporation had estimated a profit of Rs.461 million for the fourth quarter.

However, the increase in fuel cost has adversely affected the profitability and corporation faced a loss of Rs. 543 million.

Expenditure on landing over flying, Technical Handling, Maintenance, Traffic/Ramp handling, catering, cabin crew and cockpit crew salaries, crew layover, Depreciation fleet, Insurance, aircraft rental, other indirect cost, Interest-fleet and Interest-others also recorded an increase.

The break up showed that increase in fuel cost and oil stood at Rs 3,254 million, landing over flying at Rs 81 million, technical handling at Rs 03 million, maintenance at Rs 106 million, traffic and ramp handling at Rs 49 million, catering at 19 million, cabin crew Salaries at 10 million.

The break up further revealed that cockpit crew salaries training stand at Rs 13 million, crew layover at Rs 21 million, depreciation fleet at Rs 59 million, insurance at Rs 16 million, aircraft rental at Rs 120 million, other indirect cost at Rs 105 million, interest fleet at Rs 52 million, interest-Others at Rs 68 million, salaries and staff related expenses at Rs 15 million.

The Airline has estimated fuel expenditure of Rs. 4, 930 million for the quarter October-December 2005. However, expenditure jumped to Rs. 8, 184 million. This was mainly due to increase in fuel price.

PIA had fixed target for landing over flying expenditure to Rs. 1, 348 million for the fourth quarter. Actual Expenditure amount increased to Rs. 1, 429 million. The increase of Rs 81 million is due to floating of additional capacity by the airline.

PIA has set the target of Actual Rental for the fourth quarter i.e. Oct-December to Rs 761 million. The expenditure went up to Rs 881 million that was due to launching additional capacity by the airline.

Source: Online

[PIAinORD]

I don't think this was completely unexpected, but its still not exactly what most of us on this forum were hoping for...