Record Profit by Pakistan Post

[Smarana Mitra]

PIA reaches break-even in operating profit
By Salman Siddiqui
Published: April 20, 2019
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The aircraft repair and maintenance became possible after the government extended sovereign guarantees for commercial loans worth Rs5.6 billion in February 2019. PHOTO: FILE

KARACHI: Pakistan International Airlines (PIA) has claimed that it has come out of losses at the operational level after quite a long time as its revenues slightly exceeded the operating cost in the quarter ended March 31, 2019.

“PIA has achieved breakeven at the operational level,” Adviser to PIA CEO Air Vice Marshal Noor Abbas told The Express Tribune. “It, however, may take three to four years to report a net profit.”

The state-owned airline’s revenue surged to an average of Rs8-8.5 billion a month in the January-March 2019 quarter compared to around Rs7 billion a month in the same period of last year. “The operating cost was slightly lower than the monthly revenue or was almost equal,” he said.

18 new planes, new routes planned for PIA

The adviser said a notable improvement in financial management came after the seat occupancy rate per flight increased to around 90% in the period under review compared to less than 70% in the corresponding period of previous year.

Moreover, the addition of four planes to the operational fleet after repair, which took more than a year, reduction in the number of employees, drastic reduction in the ticket reservation cost, increased load factor of cargo and increase in the number of flights on profit-making routes helped achieve these results.

“Such improvement in operations came following the change of management in November 2018 when Air Marshal Arshad Malik took charge as CEO of the airline,” he said. “PIA is doing well under the five-year business plan, which got approval of the cabinet very recently.”

He revealed that PIA had been saving roughly Rs1 billion a month since it acquired the new ticket reservation software from Turkey-based firm Hitit in October 2018. “The new reservation software is costing half of what PIA was paying to the US-based firm Saber.”

“The saving is playing a major role in turning around the airline,” he said.

Considering that operating costs mainly rely on oil price and oil price has fallen below $110 of 2014 for 5 years, it is a shame that operating break-even came in 2019! Why was there operational loss when oil price was eve lower 1-2 years back? How will PIA survive if oil price rises again?

 

[waqasmwi]

That's at operating level not net breakeven. Unless whole financial statements are presented, we can't figure out the effect of actual improvement and playing with figures.

You are right but Look at the term "Break even at operating Profit". They want to use word Profit at any cost. In fact, there is no such term as "Break even at operating PROFIT". Rather it is either Operational Break even or Operational Break even point.

 

[Sugarcane]

You are right but Look at the term "Break even at operating Profit". They want to use word Profit at any cost. In fact, there is no such term as "Break even at operating PROFIT". Rather it is either Operational Break even or Operational Break even point.

Operating profit/loss is accounting term, you will find it on every Profit & Loss statement.

 

[war&peace]

Considering that operating costs mainly rely on oil price and oil price has fallen below $110 of 2014 for 5 years, it is a shame that operating break-even came in 2019! Why was there operational loss when oil price was eve lower 1-2 years back? How will PIA survive if oil price rises again?

Because now we have different govt. Current govt appointed an honest CEO who have done this within 4 months of this appointment which is remarkable. It has nothing to do with oil prices, rather with management and controlling the corruption.

 

[Shahzaz ud din]

Record Profits in PTI 8 months term
1. PR 45 billion
2. PIA 95 billion
3. PP whopping 184% increase
... (Add others if you have some more info)
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..
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(Disclaimer: it's just a Fan made list. Otherwise PIA losses increased upto 415 billion, PR and PP still in loss)

Here you go!!! One more patwaree

 

[Myth_buster_1]

Record Profits in PTI 8 months term
1. PR 45 billion
2. PIA 95 billion
3. PP whopping 184% increase
... (Add others if you have some more info)

(Disclaimer: it's just a Fan made list. Otherwise PIA losses increased upto 415 billion, PR and PP still in loss)

yah, if your corrupt masters hadnt fuked up the economy and left no money to work with then maybe this country would have been gotten better in a quicker pace.

 

[waqasmwi]

Operating profit/loss is accounting term, you will find it on every Profit & Loss statement.

Yes. That's either Operating Profit or Loss. But when there is break even, you don't use word profit or loss with it.

 

[Sugarcane]

Yes. That's either Operating Profit or Loss. But when there is break even, you don't use word profit or loss with it.

This is what PIA official said,

“PIA has achieved breakeven at the operational level,” Adviser to PIA CEO Air Vice Marshal Noor Abbas told

As far as common people are concerned, they surely have no understanding of terms which aren't of their field and talk as layman.

 

[waqasmwi]

This is what PIA official said,

“PIA has achieved breakeven at the operational level,” Adviser to PIA CEO Air Vice Marshal Noor Abbas told

As far as common people are concerned, they surely have no understanding of terms which aren't of their field and talk as layman.

G

 

[Peaceful Civilian]

Congrats. Good going. Keep it up!

 

[Shane]

I found my order status being cancelled in my order area although I have paid full amount against order so I have no option left for return.You will believe on such scams and frauds when you experience them and it seems daraz.pk,sellers and courier service providers collaborate in such scams to loot money

My experience is completely opposite. I use email to complain, explain everything cordially and professionally, attach pictures of faulty or not as advertised product with your complaint email and therefore i have never been rejected for anything worthy of complain.

Once i ordered 2 pieces of artificial jewellery for my nieces, the vendor sent just 1 as i could observe, judge from size and guess only one item inside the package but the delivery guy had to get payment for two as mentioned on daraz delivery label on package. I was agitated but i did not panic. I paid the delivery guy full amount. Made a video of delivered package while receiving it and opening it. Went online and emailed daraz with video and pictures. They took two more days but I got my money back including delivery charges.

You can still return that watch. Try this:
Take pictures of daraz packing with daraz delivery Label and faulty product.
Write email to cs@daraz.pk , introduce yourself , mention order number, write consignment number mentioned on package. Write the date you received your package. attach those pictures with your email.

Ask daraz to correct product delivery status from canceled to delivered so that you can initiate return process.

Wait for their reply, usually comes positive within 24 hours. They will inform you that the delivery status has been updated.

Initiate return. If you use daraz wallet, They will either return your money without even asking you to return product or ask you to return it. Print return label and attach it to product box...do as directed.

 

[Verve]

1st off all Senate has been told that PIA losses (over all at some period of time, not just in last year) have increased to 416 billion. It's good that now PIA is in break even. But that doesn't mean no loss. Pakistan Post is doing good and renues increased by 184% and due credit must be given. But problem comes when Youthias start using word Profit for revenues and spread fake news and stats. Reality is that PIA, PR and PP are still at loss despite some recovery in last few months


Do you know what is meant by operational break-even? Ist go to google, search and understand the term and then came here we will discuss more

Please learn to differentiate between ACCUMULATIVE losses over last decades (that is the 416b you are quoting) and annual losses.

Also learn to differentiate between Operating Profit/Loss and Net Profit/Loss.

Organisations don't turn around overnight. Large chunk of expenses are Fixed so usually the first action is to increase Revenue and decrease Variable costs! And that's what is happening, it's positive compared to what all happened in previous 10 years!

 

[waqasmwi]

Please learn to differentiate between ACCUMULATIVE losses over last decades (that is the 416b you are quoting) and annual losses.

Also learn to differentiate between Operating Profit/Loss and Net Profit/Loss.

Organisations don't turn around overnight. Large chunk of expenses are Fixed so usually the first action is to increase Revenue and decrease Variable costs! And that's what is happening, it's positive compared to what all happened in previous 10 years!

Yea I'm saying the same thing as you said.