PIA Holding Company Limited (PIAHCLA) reported Loss per share of PKR 2.93 for CY24, compared to PKR 16.67 in CY23. The group’s consolidated revenue was 239 billion, an 8% decrease compared to the previous year. This decline was primarily due to a drop in revenue from its flagship company, PIA.
The decrease in PIA’s revenue was attributed to a continuous decline in global oil prices, which had a direct impact on pricing within the global aviation sector. The deficit was partially mitigated by a strong performance from the hospitality business, which contributed significantly to the improvement in revenue.
The majority of the investment is in the hospitality business. The debt burden transferred from PIA to commercial banks has a finance cost of around 32 billion, while costs for retired employees, including medical and pension expenses, amounted to about 3.3 billion. PIA’s operating profit was 9.3 billion, a significant increase from 3.3 billion last year. This improvement is attributed to ongoing measures, including cost control and a decrease in overall jet fuel prices. It was highlighted that once PIA is relieved of its commercial debt and legacy liabilities, it will be in a position to meet its obligations, potentially achieve a surplus for capital expenditures, and pay off any remaining legacy liabilities.
Important Disclosures
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