Pakistan International Airlines (PIA) has achieved a remarkable feat by posting a profit of around Rs 60 crore in the first quarter of 2023 after years of losses.
PIA has improved its operations and efficiency by reducing operating costs by 15%, increasing revenue by 12%, and expanding its network by adding new destinations and increasing frequencies, according to a statement issued by the national carrier on Monday. PIA has also improved customer service and product quality by modernizing its fleet, introducing new in-flight entertainment systems, offering online check-in and boarding facilities, and launching a frequent flyer loyalty program, the statement said.
Air Marshal Arshad Malik, Managing Director, PIA, congratulated the staff and stakeholders for their hard work and dedication which led to this positive result. He said PIA has overcome many challenges and difficulties over the past few years such as the Covid-19 pandemic, suspension of operations in Europe, debt restructuring, and workforce rationalization.
He said PIA is on the road to recovery and rejuvenation and will continue to pursue excellence and profitability. He also thanked the government and civil aviation authorities for their support and guidance.
PIA’s profit in the first quarter of 2023 is a significant achievement for the airline, which has been in financial difficulties for a long time. According to the 2020 report, PIA posted a loss of Rs 34.6 billion for the year, down from Rs 52.6 billion in 2019.
Parliamentary Secretary for Railways Kiran Imran Dar on Friday told the National Assembly.
Replying to a question during the “Question Hour”, she said the PIA was paying Rs60 million markup on financial loans obtained from time to time.
The national flag carrier’s losses decreased during 2020 and 2021 mainly due to the COVID-19 outbreak resulting in limited flight operation during 2020 as well as significant steps taken on cost-cutting measures, including a voluntary reduction in employees’ salaries, rationalization capacity, and a greater focus on cargo/charter operations during the pandemic, she added.
Dar said the process of decrease in losses could have continued but due to an increase in fuel prices and fluctuation in the dollar exchange rate to the higher side, and an increase in interest rate.
PIA’s profit in the first quarter of 2023 shows that the airline has adapted to the changing market conditions and overcome the challenges with resilience and innovation. It also indicates that PIA has the potential to grow and compete with other airlines in the region and beyond.
