KARACHI: Pakistan International Airlines (PIA) has managed to enhance its income in first six months of the present calendar yr, supported by a hefty rupee depreciation, revealed the revenue and loss assertion that the airline despatched to the Aviation Division.
When PIA was contacted, it neither confirmed nor denied the statistics.
“I can’t touch upon the report,” stated PIA spokesperson Abdullah Hafeez Khan. “It was not issued by us.”
Based on a replica of the revenue and loss assertion obtainable with The News Observers, the brand new administration of the nationwide flag provider raised its income from Rs65.72 billion within the first half of 2018 to Rs94.73 billion within the corresponding interval of 2019, a rise of over 44%.
Nevertheless, the airline nonetheless recorded a lack of Rs32.7 billion within the first six months of 2019 towards lack of Rs38.5 billion in the identical interval of earlier yr, a year-on-year lower of Rs5.eight billion, which seems to be a major achievement for the airline.
Afsar Malik, an aviation professional who served the Pakistan Civil Aviation Authority (PCAA) for nearly three many years, defined that the achieve in income stemmed from over 50% depreciation of the rupee towards the greenback prior to now two years.
“Airways promote about 80% of their worldwide tickets in international forex whereas their monetary statements are ready in native forex, subsequently, the income is calculated after changing the international forex into native forex,” elaborated Malik.
Therefore, the rise in income from Rs65 billion in first six months of 2018 to Rs95 billion in the identical interval of 2019 was primarily due to rupee depreciation and never due to PIA’s higher efficiency on worldwide routes, he added. The central financial institution let the rupee depreciate from practically Rs106 towards a greenback in December 2017 to round Rs160 until June 30, 2019.
“After we convert the income into US dollars as per the change price prevailing on the time of recording the income, then the receipts in first half of 2019 got here in at $594 million in comparison with $650 million in the identical interval of 2018,” stated the professional. “This reveals that the income has dropped when it comes to US greenback.”