PIACL losses touch Rs47.73bln in 2017

KARACHI: The Pakistan International Airlines Corporation Limited (PIACL) losses went up 6.66 percent to Rs47.73 billion in 2017 from Rs44.75 billion in 2016, a bourse filing showed on Friday, as the company released its financial results after an 18-month gap.

Loans increased the financing cost of the national airlines by 16 percent, as they stood at Rs15.78 billion in 2017 compared to Rs13.58 billion in 2016, a notice to the Pakistan Stock Exchange showed.

Under its cost of services head, the fuel costs trimmed the overall revenues of the airline to a great extent. According to the results, the fuel costs went up 13.96 percent amounting to Rs30.94 billion in 2017, compared to Rs27.15 billion in 2016.

In cost of services, other expenses increased only 0.5 percent to Rs85.84 billion in the year under review from Rs85.37 billion in 2016. However, the huge difference in fuel costs resulted in gross losses jumping 24 percent to clock in at Rs12.58 billion up from Rs10.10 billion in 2016.

The PIACL notice showed that the loss per share for ‘A’ class ordinary shares of Rs10 was Rs9.12, whereas for the ‘B’ class ordinary shares of Rs5 it was Rs4.56.

In May, the Pakistan Stock Exchange (PSX) had warned the PIA to comply with the financial disclosure laws till the mid of the current month to avert suspension of trading in its shares in the capital market. The national airline was advised to rectify the defaults till May 21, 2019 to avoid immediate suspension in the interest of investors.

However, on May 21, the PSX had informed all concerned that the Securities and Exchange Commission of Pakistan (SECP) granted extension in time for holding the overdue annual general meeting of the company for the year ended December 31, 2017 and 2018 up to September 30, 2019.

Consequently, the exchange decided not to suspend trading in the shares of the PIA. However, the PSX said that the company would be quoted in the Defaulters’ Segment until rectification of default, while trading in its shares would be settled as usual on T+2 basis.

Earlier, the company was placed as a loss-making airline in the defaulters segment with effect from October 10, 2018 for its failure to hold AGM and submit annual and audited accounts for the year ended December 31, 2017.