PIA incurs over Rs7.5bn losses in first three months as Covid-19 dents aviation

The coronavirus pandemic continued to dampen the global aviation industry, as Pakistan International Airlines (PIA) incurred a loss of over Rs7.5 billion in the first three months of this year.

PIA has released its financial report for the quarter ended March 31, 2021 stating that during the first three months of this year, PIA faced a deficit of Rs. 7.51 billion.

Due to extremely challenging environment on account of COVID-19, PIA has attained gross loss of Rs 3.6 billion and operating loss of Rs 5.4 billion during the period ended March 31 2021. It was assumed that after the introduction of vaccine operations will start to normalise in February/March 2021. However, third wave of COVID-19 strict border closure / quarantine conditions affected PIA routes including KSA, Gulf, Malaysia, UK etc.

PIA report said that the covid-19 pandemic deliver the largest shock to air travel and the aviation industry since the Second World War. Previously the adverse impacts on aviation of the 9/11 terrorist attacks and the 2007-08 global financial crisis was thought dramatic. But neither had an impact that compares with massive decline in global revenue passenger kilometres.

According to the report, PIA's A-class share lost Rs 1.44 per share and B-class lost 72 paise per share. PIA's total revenue stood at Rs 15.50 billion while PIA's expenditure stood at Rs 19.10 billion. ۔

The report released by PIA said that the operational loss of the airline was Rs 5.41 billion while the improvement in the value of the rupee benefited PIA by Rs 4.14 billion.

The report further said that PIA paid Rs6.24 billion in interest and loans.

The report said that the operating environment for PIA remains very challenging due to COVID-19. PIA has lost its key Umrah season due to restrictions imposed by KSA government.