With over Rs 200 billions in terms of liabilities and mounting losses inherited from the past managements, the new management which was currently engaged in turning it around both in regularity and punctuality besides preparing for mega operation of Hajj, would find it difficult to turn the numbers to green from red for quite sometime, he added.
The national carrier last recorded profit of rupees two billion in the year 2004, and since then challenging economic conditions, deteriorating law and order situation in Pakistan and double-digit inflation continued to mar domestic business environment. And on the international front, global recession and visa restrictions by many countries on Pakistani passport holders weakened the traffic growth.
In the first quarter (ended on March 31) of the year 2012, seat factor of PIA declined from 75 percent to 70.3 percent as compared to corresponding period last year. In addition to it, the freight revenues decreased by Rs 43 million, while Charter revenue fell by Rs 399 million.
Adding to its woes is the rising fuel prices and sliding Pak Rupee that had resulted in the increase of fuel cost by 16 percent (Rs 2 billion) and exchange loss by 200 percent (Rs 1.5 billion) in the reported period. The issue of increasing fuel prices is still hovering around to haunt the airline as this year by March crude oil prices shot up 10.8 percent above corresponding period last year, while rising tensions between Iran and the West resulted into sanctions that remain a...