PIA Holding Company Limited (PSX: PIAHCLA) has reported a significant reduction in net losses for the year ending December 31, 2024. The national carrier’s net loss stood at Rs15.35 billion, showing an 82.41% improvement from a net loss of Rs87.26 billion in 2023.
Despite a decline in net revenue, which fell by 7.68% to Rs239.65 billion compared to Rs259.59 billion last year, the company saw an improvement in its financial position due to a reduction in operating costs. The total cost of services decreased by 15.88%, mainly driven by a 22.92% reduction in aircraft fuel costs and a 10.36% decrease in other service costs.
This resulted in a gross profit of Rs51.74 billion, a 42.90% increase compared to Rs36.2 billion in 2023. However, the company’s operating expenses increased significantly by 1,031%, leading to a sharp decline in profit from continued operations by 51.02%.
Other income also saw a major drop of 91.56%, falling to Rs2.98 billion. Despite the challenges, PIA’s finance costs decreased by 33.81% to Rs60.23 billion, which led to a smaller loss before levy and income tax of Rs43.99 billion, compared to Rs77.82 billion in 2023.
The company also posted a loss from discontinued operations amounting to Rs524.58 million. Exchange losses significantly dropped by 90.78%, down to Rs2.39 billion from Rs25.91 billion last year.
On the positive side, PIA’s loss before income tax saw a 42.79% improvement, reducing to Rs45.53 billion from Rs79.59 billion. The airline’s tax-related improvements helped cut its overall loss significantly, with the net loss for the year standing at Rs15.35 billion.
The airline also saw a marked improvement in its loss per share (LPS), which dropped to Rs2.93 for A Class shares and Rs1.47 for B Class shares, down from Rs18.67 and Rs8.33, respectively, a reduction of 84.31% and 82.35%.
In other developments, PIA is also looking to address its financial situation with the government of Pakistan launching a fresh privatisation round, offering a 51%-100% stake in the airline. The government has also shifted legacy debt to its balance sheet to help with the failed bidding process in previous rounds.
PIA has also launched a new direct flight from Lahore to Baku, which started on July 20, further expanding its global routes.
