PIA witnesses increase in revenues after implementing reform plan

KARACHI: The national flag-carrier, Pakistan International Airlines (PIA), has started bearing the fruit of the ongoing reform plan as it witnessed a sharp rise in revenues up to Rs144 billion which stood at Rs99 billion last year, ARY News reported on Monday.

The national airline’s statistics obtained by ARY News showed a significant reduction in its financial deficit deducted to Rs17 billion from Rs38 billion. The document showed that PIA’s per kilometre income increases up to Rs9 from Rs6.27, whereas, its seat factor rises to 81 per cent from 77 per cent.

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Following the improvements made in the national airline, the passengers show confidence over PIA as the airline recorded an increase in passengers up to 125,000 on domestic and international flights during one year.

Read: PIA placed in list of normal trading companies by PSX

The airline collected Rs178.5 million revenue from bulkhead seats after bettering its strategy besides increases its earnings from cargo up to Rs600 million. The airline collected Rs500 million income in term of additional luggage from the passengers.

For the first time in the history of the national airline, PIA’s 32-plane fleet is fully activated and the aircraft are taking part in domestic and international flight operations. The document stated that 12 Boeing 777 aircraft, 12 Airbus 320 planes and eight ATR planes are taking the flight operations. Moreover, PIA has also increased the number of flights to Gulf countries under its reform plan.

It is pertinent to mention here that the Pakistan Stock Exchange (PSX) on Tuesday took the national aircraft carrier service, Pakistan International Airlines (PIA) out of the list of payment defaulters. PSX placed the national airplane service has since been placed in the normal category of trading companies.

Read: PIA slashes airfare for London bound flights till March 15

Earlier on February 7, Federal Minister for Aviation Ghulam Sarwar Khan had briefed the Senate that the Pakistan International Airlines’ (PIA) income has increased, while the expenses have recorded a sharp decrease.

The minister said the audit of the national flag carrier from 2015 to 18, has been completed. Referring to the loss of Rs.11 billion to the PIA in the year 2019, Ghulam Sarwar Khan said the figures were not certified and were not detected in the audit.

He said PIA was placed in a list of bankrupt companies by the Securities and Exchange Commission of Pakistan (SECP), but now it has come out of the list due to positive policies of the incumbent government. The Aviation minister said rules of transparency were kept in mind while auctioning inner entertainment system of the PIA.