KARACHI: Pakistan International Airlines Corporation Limited (PIACL) suffers from liquidity issues that have increased borrowings and raised finance cost by 78.16 percent to Rs 21.70 billion from Rs 12.18 billion in half year. This increase was also influenced by a hike in interest rates.  Airline incurred a staggering loss of Rs 43.48 billion during half-year ended June 30, 2022, increasing by 64 percent compared to a loss of around Rs 26.53 billion in same period last year. Airline reported a gross loss of Rs 2.6 billion compared to Rs 8.92 billion last year, which is down by 71 percent.

According to PIAC’s consolidated results, its net revenue went up by 160 percent to Rs 73.89 billion in January-June 2022 against Rs 28.33 billion in same period of last year. Cost of services soared to Rs 76.49 billion, compared with Rs 37.25 billion last year. Administrative expenses increased to Rs 5.708 billion from Rs 4.91 billion, while distribution costs went up by 34 percent to Rs 3.13 billion compared to Rs 2.33 billion during first half of 2022. Fuel costs during period had a massive 300 percent increase from Rs 7.63 billion in January-June 2021 to Rs 30.57 billion in same period this year.

Airline also reported a net exchange loss of Rs 13.82 billion during period in review. Company reported a loss per share of Rs 8.31 as compared to a loss per share of Rs 5.07 for A-class ordinary share of Rs 10 each. For B class ordinary shares of Rs 5 each, it reported a loss per share of Rs 4.16 versus Rs 2.54.

Published in The Daily National Courier, September, 01 2022

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