Managing three full year audits — one of the key requirements of a public entity, in a matter of months without any qualifications from auditors was one of the key factors to enable the turnaround cycle
SoDATA — In a remarkable exhibit of performance, Pakistan’s national carrier PIA has announced its financial results for the year 2019, after approval of its board and submitted with the SECP and Pakistan stock exchange.
PIA earned revenue surged to Rs. 147.5 billion for the year 2019 as compared to Rs. 103.5 billion in 2018 showing a huge growth of 43% in 2019 (in a single year) while the Operating Loss was significantly reduced by whopping 76% in 2019 as compared to last year (2018). The loss before interest & taxation was also reduced by 59% as compared to 2018.
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For the first time in eight years, the national carrier has been able to achieve gross profit of Rs. 7.8 billion versus gross loss of Rs.19.7 billion in 2018.
When current CEO, Air Marshal Arshad Malik –an Air Force officer, joined in 2018-2019, the audits for two consecutive financial years 2017 and 2018 were pending. The management initiated action to complete audits for first 2017 (announced in Sep 19) and then of 2018 (announced in Dec 19), and now after completion of 2019 Audit, PIAs financial results are up to date and within SECP guidelines.
Managing three full year audits — one of the key requirements of a public entity, in a matter of months without any qualifications from independent auditors was one of the key factors to enable the turnaround cycle.
The clearing of deck helped boost consumer, investors and creditors confidence and “the carrier’s posit in public trading is expected to improve”, says an expert.
The salient features of financial results for the year 2019 are attributed mainly due to routes optimization and fares rationalization, enhancement of ancillary revenue by double digits while undertaking stringent cost discipline in all aspects of the business.
Grounded fleet was made air worthy again while managing a steady supply chain for the spares and other inventory for the maintenance and upkeep of the aircraft was also a hallmark of 2019 performance.
Based on PRESS RELEASE
