Breaking News: PIA losses Rs. 6.3 billion in a month

Breaking News: PIA losses Rs. 6.3 billion in a month

Pakistan International Airlines (PIA) losses may increase to Rs6.3 billion a month if the situation deteriorates as a result of the rapidly expanding coronavirus and the airline decides to completely stop international flights. In such a scenario, it will begin to record operating losses again, which it managed to eliminate in the recent past. According to estimates made by the national flag airline’s finance department, the airline could post losses in the range of Rs2.6-6.3 billion based on three different scenarios, which it prepared to assess the impact of the coronavirus on the airline. According to Scenario A, the airline will completely suspend flights to Saudi Arabia, Doha, Kuwait, Milan and China, leading to a loss of revenue of Rs 5.4 billion, while the net deficit will be Rs 2.6 billion after deduct the cost of operations.
In scenario B, the airline strategies to operate only 40% of scheduled flights to the UAE and 75% of flights on the remaining international routes. At the similar time, it will suspend flights to Saudi Arabia, Doha, Kuwait, Milan and China. According to the official, the airline is likely to lose Rs8 billion in revenue while following this plan and the net deficit is expected to be Rs3.9 billion. In scenario C, the airline is reflecting on the closure of all international flights, after which it would lose Rs12.8 billion in revenue with a net deficit of Rs6.3 billion. When PIA spokesman Abdullah Khan was contacted for comment on the matter, he said that a large part of the airline’s traffic came from Saudi Arabia and that most of the passengers were Umrah pilgrims. After Saudi Arabia, the highest traffic for the airline comes from the United Kingdom and other European countries. “After a halt on the Umrah pilgrimage along with PIA-operated ferry flights to the UK in the national interest to bring stranded countrymen back, their losses may increase significantly,” he said. He added that the airline had not yet made official estimates of the total losses suffered after the coronavirus outbreak, which would be billions of rupees per month. He expressed fear that the airline will have to stop all operations. PIA has currently suspended flights to China, Japan, Qatar, Kuwait, Oman and Italy, with a halt on flights to Saudi Arabia that will take effect from March 18. The entire international travel industry is faltering and PIA is no different. According to estimates by the International Air Transport Association (IATA), global airlines could lose 15-18% of their total revenues in the coming weeks. “Yes, it is a serious situation and PIA’s financial difficulties will continue to increase,” said Khan.

Related posts

Leave a Comment