Islamabad May 31 2023: Pakistan International Airline Corp (PIAA) reported loss surged 270 percent in first quarter of 2023 mainly on account of adverse exchange rates and corresponding finance cost, according to company filing to the exchange.
During the Q1 2023, the airline generated a total revenue of PKR 59.1 billion as compared to PKR 34.5 billion in the corresponding period last year, witnessing an increase of 71.3 percent.
However, PIAA managed to increase the gross profit to PKR 4.9 billion in 1Q 2023 as compared to PKR 1.3 billion in the same period last year. Aircraft fuel remained the single largest element of total cost at 47 percent with increment over average fuel costs and exceptionally highe exchange rates during the quarter.
In addition, the net loss surged to PKR 36.7 billion as compared to PKR 13.5 billion in the same period last year mainly on account of adverse exchange rates and corresponding financial costs. The airline suffered exchange loss of PKR 20.9 billion witnessing an enormous increase when compared to loss of PKR 3.7 billion in Q1 2022. The ongoing liquidity crisis and financial constraints led to inreased borrowing to meet working capital needs. Resultantly, the business took a hit of nearly PKR 16.8 billion on account of financial charges compared to PKR 9.7 billion Q1 2022.
