PIA claims to come out of losses at the Operational level
- After several years, PIA reached break-even on an operational level
- Some achievements made by PIA.
- PIA saved RS.1 billion per month from its new ticket reservation software.
For the first time in several years, Pakistan International Airlines (PIA) has overcome operational losses.
This news about Operational losses has been shared by the Adviser to PIA CEO Air vice Marshal Noor Abbas during an interview with a local newspaper.
“PIA has achieved break-even at the operational level. However, it may take 3-4 years to report a net profit,” Vice Marshal Noor Abbas said.
He also said that the revenue increased to RS.8-8.5 billion a month during the third quarter (January-March) compared to RS.7 billion a month in the same period last year.
“Our operating cost was slightly lower than the monthly revenue or was almost equal,” Advisor said.
Seat occupancy rate increased:
The rate of seat occupancy per flight increased to around 90%. This remained less than 70% during the same period in 2018, the Advisor told.
“Besides this, there are various factors which led to the financial improvement,” he added.
What else PIA has done?
PIA has added four planes to the fleet after a repair, reduced the number of employees and decreased the ticket reservation cost.
Behind this achievement, there is also an increase in flights on the profit-making routes and suspension of loss-making routes.
Who owns the achievement?
The new management of the state-owned airline under Air Marshal Arshad Malik has been credited by the Advisor for the phenomenal change. He said that PIA is doing great under its five-year business plan.
RS.1 billion saved through new ticket reservation software:
Noor also revealed that the airline was saving RS.1 billion per month from the new ticket reservation software.
What is the new reservation software?
According to the Advisor, the new reservation software has been acquired from a Turkey-based firm Hitit in October 2018. It has reduced the cost to half of what PIA was paying to the US-based firm Saber. The airline’s financial situation has been improved a lot through cost saving.