PIA Reporting Improved Performance for Year 2019

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PIA Reporting Improved Performance for Year 2019

Post by Abbas Ali »

PIA reporting improved performance in year 2019, according to news sources.

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PIA’s per kilometre income increased to PKR 9 from PKR 6.27 in 2018.

Seat factor rose to 81 percent from 77 percent in 2018.

Passenger revenue and cargo revenue increased.

Earnings through excess baggage, bulkhead seat charges also increased.

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Re: PIA Reporting Improved Performance for Year 2019

Post by Abbas Ali »

Better management: PIA curtails financial deficit by 65.6pc

February 11, 2020

Islamabad
With effective policies introduced by the Pakistan Tehreek-i-Insaf (PTI) government, the Pakistan International Airlines (PIA) has started curtailing its financial deficit that witnessed a remarkable decrease in 2019 as compared to the corresponding year.

“During the period, the PIA losses have come down from Rs 32 billion to Rs 11 billion, projecting a decline of 65.6 percent,” according to an official source.

Recently, the Aviation Division in a written reply to the Senate had submitted that the decrease in losses was being achieved by enhancing revenues and curtailment of costs.

“The revenue side is being addressed by improving market share through realigning sales team, manning stations on merit, aggressive sales promotion, improvement in product and services, focusing on revenue generation through ancillary sources, mounting new flights and expanding on existing productive routes such as KSA and Gulf.”

While, the cost curtailment was being done by adopting austerity measures and bringing down unnecessary administrative expenses.

Source: Pakistan Observer
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Re: PIA Reporting Improved Performance for Year 2019

Post by Abbas Ali »

According to news sources:

In the first six months of 2019 PIA suffered operating loss of seven billion rupees.

In the first six months of 2018 PIA had suffered operating loss of seventeen billion rupees.

Revenue increased by forty-four percent and loss decreased by fifty-nine percent in the first half of 2019.

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Re: PIA Reporting Improved Performance for Year 2019

Post by Amaad Lone »

might be a good idea to relaunch some shut European routes.

Frankfurt, Amsterdam, Rome, Athens, Hong Kong, Singapore, Bangkok, using a few used fuel efficient A330-200s.

Even routes where 777 is flying at 70% load PIA should move to A330-200.

Etihad just sold 18 A330-200s to a leasing company, might be a good idea to pick up a few of those, and keep the 777s for Saudi and UK routes.
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Re: PIA Reporting Improved Performance for Year 2019

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In the first six months of 2019 PIA suffered loss before taxation of 37.90 billion rupees.

In the first six months of 2018 PIA had suffered loss before taxation of 32.18 billion rupees.

The airline was suffering loss of PKR 8,651,000/- per hour in the first six months of 2019.

The airline was suffering loss of PKR 7,400,000/- per hour in the first six months of 2018.

According to another report, the airline suffered loss of 33 billion rupees in the first six month of 2019.

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Re: PIA Reporting Improved Performance for Year 2019

Post by Amaad Lone »

A huge part of this 32 billion is interest payments on the loans PIA has taken in the last 14 years.

PIA really needs EQUITY INJECTION. 300 BILLION TO PAY OFF THE DEBT.

Reduce interest payments and the losses can be reduced to levels that can be controlled.

But where will the equity come from?????????????
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Re: PIA Reporting Improved Performance for Year 2019

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PIA suffered loss of 53.10 billion rupees in 2019.

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Urdu daily 'Awaz' (February 14, 2020, edition)

The airline had suffered loss (before tax) of 67.41 billion rupees in 2018.

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Re: PIA Reporting Improved Performance for Year 2019

Post by Amaad Lone »

With bank loans of over 300 billion rupees and discount rate at 13.25% PIA will never be able to make a profit.

Operating losses plus mark up will only make PIA bleed more money.

One other option is to mortagage Roosevelt Hotel and Scribe Hotel in Paris to the maximum in dollars where mark up rate is lower and then bring that money back to Pakistan covert in rupees and pay off more expensive loans.

Use the profits from the hotel to pay off the mark up of dollar loans and PIA would have reduced its high interest rate loans by a large percentage leaving behind a dollar dominated loan which PIA is using a collateral that is also dollar based.
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Re: PIA Reporting Improved Performance for Year 2019

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In the first half of year 2019, PIA suffered pre-tax loss of 37.56 billion rupees.

In the first half of year 2018, PIA suffered pre-tax loss of 32.18 billion rupees.

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Source: PIA

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Re: PIA Reporting Improved Performance for Year 2019

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Loss of fifty-three billion rupees suffered by PIA in 2019 is being audited, according to statement of airline's spokesperson in February 26 newspaper.

PIA operational loss was reduced by twenty billion rupees in year 2019.

The fifty-three billion rupees loss in 2019 is fourteen billion rupees lesser than the loss of sixty-seven billion rupees suffered by the airline in 2018.

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Re: PIA Reporting Improved Performance for Year 2019

Post by Amaad Lone »

Any full year results.

The exchange rate loss will probably reverse a bit as the dollar went from 164 to 155.

But finance cost will remain at same level as before.

so another 16 billion in finance payments plus another 7 billion in operating losses but a bit recovery of exchange rate loss.

I think PIA will close the year with 55 billion in losses for 2019 out of which 31 billion will be finance charges.

If PIA was able to wipe out operating losses for the secondhalf then total losses will be around 50 billion rupees.
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Re: PIA Reporting Improved Performance for Year 2019

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PIA has reported net revenue of Rs144 billion in its yet to be audited and unconsolidated profit-and-loss report for the year 2019, and out of the total net revenue, 65 percent (Rs93.6 billion) was generated only from Saudi Arabia and UK sectors, which comes to around Rs7.8 billion per month from these two sectors.

https://epaper.brecorder.com/2020/04/11 ... -news.html
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Re: PIA Reporting Improved Performance for Year 2019

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PIA has submitted year 2019 annual financial results to stock exchange.

Revenue
In 2019, PIA revenue increased by 43 percent.
The revenue increased to 148 billion rupees from 104 billion rupees.

Gross Profit
PIA achieved gross profit of 8 billion rupees in 2019.
PIA had suffered gross loss of 18 billion rupees in 2018.
PIA recorded gross profit for the first time in eight years

Operational Loss
PIA operational loss reduced by 76 percent in 2019.
PIA had suffered operational loss of 32 billion rupees in 2018.
PIA operational loss reduced to 7.7 billion rupees in 2019.

Seat Factor
PIA seat factor increased to 81 percent from 77 percent.
World's leading airlines are recording nearly 80 percent seat factor.

PIA achieved break-even in the second half of year 2019.

Despite financing 2018 loss, PIA total loss for year 2019 reduced by 19 percent.

2017-18 audit reports were pending when current management took charge of the airline.

Financial team of the current management within short period of time completed audit reports for years 2017, 2018 and 2019.

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Re: PIA Reporting Improved Performance for Year 2019

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PIA consolidated losses reported to the stock exchange for 2019 reported at 56 billion rupees for the year 2019.

Unconsolidated were 55 billion.

I wrote the following on Feb. 26th of this year.
Any full year results.

The exchange rate loss will probably reverse a bit as the dollar went from 164 to 155.

But finance cost will remain at same level as before.

so another 16 billion in finance payments plus another 7 billion in operating losses but a bit recovery of exchange rate loss.

I think PIA will close the year with 55 billion in losses for 2019 out of which 31 billion will be finance charges.

If PIA was able to wipe out operating losses for the second half then total losses will be around 50 billion rupees.
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Re: PIA Reporting Improved Performance for Year 2019

Post by Amaad Lone »

So if revenue was 148 billion and losses were 56 billion that means total expenses were 204 billion rupees.

So expenses increased from 170 billion to 204 billion or an increase of 34 billion rupees.

Finance charges increased from 20 billion to around 31 billion that is 11 billion rupees more.
Exchange rate losses in 2018 were around 15 billion rupees while in 2019 (half year) the losses were 14.5 billion rupees but the rupee stabilized after that and those losses were probably at the same level as 2018.

Operational Losses for the first six months were 7.1 billion and for the entire year also around 7.7 billion so actually in the next six months PIA operating losses were reduced to just 600 million rupees which is a good sign.

Fuel charges for 2018 full year were 43.55 billion while in six months of 2019 it was 22.5 billion ( or probably full year at 45 billion rupees).

But an increased of 23 billion rupees in other charges, other than finance charges and exchange rate charges.

Bottom line is PIA is now losing more money in interest payments than its operations.

A loss of 56 billion minus the 31 billion in interest payments and 15 billion in exchange rate losses mean 46 billion under two items. Leaving a net loss of 10 billion rupees in other sectors.

Some will say its an improvement but a 56 billion loss is still huge for an airline with 31 planes.
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