PIA revenues, operational costs rise in Q1 2018

KARACHI: Pakistan International Airlines (PIA) in the first quarter of the year 2018, has generated Rs23.5 billion in revenues, up by Rs1.6 billion or 7 per cent when compared with the same period last year. A PIA spokesman said on Wednesday. The key contributors in revenue growth are aggressive sales and marketing, increased schedule reliability (now standing at the highest ever mark of 91 per cent), discipline and serious efforts into product improvement such as cabin cleanliness and refurbishments, food quality, changed attitudes etc. The operational cost also showed escalations and increased by Rs1.3 billion. The costs escalations are primarily due to increase in fuel prices by 31 per cent over the same period and rupee devaluation by 15 per cent. However, the financial statements have not been approved as yet. Furthermore, the SAFA has shown confidence in the airline’s safety standards.

It would be worth mentioning here that the PIA management is committed in overall fixing and transforming the organisation for not only growth but sustained profitability. Up till few months ago, the aircraft fleet, the revenue earner entities, were in an unkempt state with several aircraft grounded due to lack of spares and cannibalisation, broken down lavatories to dirty seats to worn out carpets. All of these have been fixed with complete cabin refurbishment of the fleet. The relentless efforts towards getting the long ground aircraft back in the air have yielded results. That is a huge feat considering the overall capability and financial situation of the airline.

Pakistan International Airlines is turning around and all the major stakeholders are showing confidence in the efforts that are being undertaken in that regard. The recent release of funds by the Government of Pakistan, which was not done previously due to apprehensions as well as debt restructuring negotiations are themselves the acknowledgement of performance and initiatives. PIA spokesman said that certain elements are trying to malign the management which is committed to bringing about positive improvements in the airline with the combined efforts of all employees. The management and its employees are committed to bring improvements for the progress of the national flag carrier of Pakistan.

 

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