Karachi May 19 2023: Pakistan International Airlines loss soar to PKR 97.2 billion in 2022 due to exchange losses and higher interest expense.
Due to improvement in travelling and resumption of Hajj flights, Ummrah and Aarbaeen, PIA gross loss reduced to PKR 0.7 billion compared with PKR 8.5 billion in the same period last year.
However, National airline reported operating loss of PKR 15.3 billion during the year 2022 compared with PKR 18.4 billion in 2021, as per company filling to the exchange.
The entity remained in pressure due to financial constraints and liquidity problems, resulting in increased borrowing to meet working capital requirements.
PIAA booked exchange loss of PKR 25.2 billion compared to exchange loss of PKR 7.3 billion in the last year.
Finance cost of the national carrier increased to PKR 51.7 billion in 2022 from PKR 28.5 billion in 2021 due to higher interest rates. PIA also booked loss on investment property of PKR 8.4 billion in 2022 which was absent in 2021.
As a result, loss of the PIAA increased to PKR 97.2 billion in 2022 compared with PKR 53.4 billion in 2021.
PIA was incorporated in Pakistan on January 10, 1955. The principal activity of the Corporation is to provide commercial air transportation, which includes passenger, cargo and postal carriage services. Other activities of the Corporation include provision of engineering and other allied services.