Pakistan PIA attains profit of Rs1.67bn for first quarter of 2014

[defence_analyst]

KARACHI: The Pakistan International Airlines (PIA) has attained operating profit of Rs1.67 billion for the first quarter of 2014 – January 1 to March 31 – as against a loss of Rs5.65 billion of corresponding period last year.

The national flag carrier has attained the operating profit for the first quarter after a lapse of four years.

This was declared in the board of directors meeting, chaired by Secretary Aviation and Chairman PIA, Muhammad Ali Gardezi, held at the airline’s head office here on Tuesday. Managing Director PIA, Muhammad Junaid Yuonus was also present in the meeting.

According to the results of first quarter 2014, the total revenue stood at Rs28.0 billion as against Rs25 billion of 2013.

However, the net loss after paying financial costs and taxation stood at Rs1.98 billion as against Rs8.62 billion last, which shows a remarkable decline of almost 77 per cent in losses. The loss per share has dropped from Rs2.86 to Rs0.56.

The government of Prime Minister Nawaz Sharif has been taking bold steps including privatisation to enhance the national flag carrier’s customer services, on time flight arrivals and departures with safety in order to make it a profitable entity.

The board appreciated performance of the national airline and efforts of Shujaat Azeem, Special Assistant to Prime Minister on Aviation and Chairman PIA Gardezi for the revival of PIA.

PIA attains profit of Rs1.67bn for first quarter of 2014 - Pakistan - DAWN.COM

 

[Dubious]

who did they loot?!

If true

 

[defence_analyst]

Great turn around, at least in case of PIA.

 

[EagleEyes]

Great turn around, at least in case of PIA.

Kaddu great turn around, the previous management looted big time, they are just looting a lot less.

 

[Bilal.]

If I am not mistaking they don't even have basic systems like an ERP. Inventory is maintained on paper and looted at will.

 

[BATMAN]

In short, PIA was in profit before Zardari and now is back in profit after Zardari!

I have never met a person, who has voted for Zardari.... amazing he was President of Pakistan, in the most critical juncture of time in history.

 

[defence_analyst]

Kaddu great turn around, the previous management looted big time, they are just looting a lot less.

Credit to N League!

 

[Pakistani shaheens]

In past PIA was amongst the greatest air lines of world but those corrupt politicians especially Asif zordari destroyed it. Now finally a good news is coming from PIA. I hope this progress will increase further. Insha Allah

Lagawab service , bakamal loog

 

[imiakhtar]

There seems to be a miss understanding on this thread given the kudos people are giving PK.

Operational profit = Revenue - operational cost.

Once you factor in the debt (a reality when you buy/lease new planes), you get:

the net loss after paying financial costs and taxation stood at Rs1.98 billion

In short, PIA was in profit before Zardari and now is back in profit after Zardari!

PIA hasn't made a profit since 2003 (pre-Zardari era).

Let's not make this political.

Of course, the real test will be during the summer when traffic numbers are at their peak and the hajj is in full swing.

 

[defence_analyst]

There seems to be a miss understanding on this thread given the kudos people are giving PK.

Operational profit = Revenue - operational cost.

Once you factor in the debt (a reality when you buy/lease new planes), you get:





PIA hasn't made a profit since 2003 (pre-Zardari era).

Let's not make this political.

Of course, the real test will be during the summer when traffic numbers are at their peak and the hajj is in full swing.

"However, the net loss after paying financial costs and taxation stood at Rs1.98 billion as against Rs8.62 billion last, which shows a remarkable decline of almost 77 per cent in losses. The loss per share has dropped from Rs2.86 to Rs0.56."

77% decline in losses is huge improvement.

 

[BATMAN]

Let's not make this political.

I have no sympathies with either, but there is political element since the govt. is different.

 

[imiakhtar]

77% decline in losses is huge improvement

Whilst it may be a decline and baby step in the right direction, for an impoverished nation like Pakistan, losing $20m is a big deal.

As I said, you can breathe a sigh of relief when the hajj and summer travel peak is over.

Also, I understand according to other reports that the tender to acquire 10 additional A320 family aircraft from QALC has been cancelled and new tender submitted.

 

[farhan_9909]

Well done

anyway i am yet to meet a person in person,who will praise zardari or previous govt

 

[Assault Rifle]

There is a huge difference between operating profit & net profit.
Operating profit does not take taxes,interest & some other stuff into account.

According to the results of first quarter 2014, the total revenue stood at Rs 28.0 billion as against Rs 25 billion of 2013. However, the net loss after paying financial costs and taxation stood at Rs 1.98 billion as against Rs 8.62 billion in the year 2013 which shows a remarkable decline of almost 77 percent in losses. The loss per share has dropped from Rs 2.86 to Rs 0.56.

PIA records 77pc decline in loss in first quarter of 2014

Majority of investors/shareholders takes into account net profit & not operating profit.

 

[defence_analyst]

Whilst it may be a decline and baby step in the right direction, for an impoverished nation like Pakistan, losing $20m is a big deal.

As I said, you can breathe a sigh of relief when the hajj and summer travel peak is over.

Also, I understand according to other reports that the tender to acquire 10 additional A320 family aircraft from QALC has been cancelled and new tender submitted.

Its huge turn around, from losing $86 million to $20m.