PIA posts Rs 1.873 billion net profit in 2002

KARACHI (April 08 2003) : Pakistan International Airlines Co, the national carrier, returned to a profit in the year ended December 31, 2002 as costs were cut.

It posted a net profit of Rs 1.873 billion, reversing from a loss of Rs 2.205 billion, in 2001, the company said in a statement to the Karachi Stock Exchange released on Monday.

“The company made profit after it stopped some of the loss-making routes and laid off some of the staff, to help cutting its cost,” an analyst said.

Pakistan International Airline's share price fell 0.65 rupee, or 7 percent to 8.60 rupees at the close of Karachi Stock Exchange on Monday.

Last week, the board meeting held in Lahore and officials of the PIAC unveiled the figures.

The 270th meeting of the PIAC board of directors, held here on Thursday with PIAC Chairman Ahmed Saeed in the chair, discussed and approved the annual accounts of the PIAC for 2002.

The national carrier fulfilled its commitment given to the government by making profit of Rs 2.110 billion during the year ending December 31, 2002 after five years of huge losses amounting to more than Rs 12 billion.

According to the financial statements, cash flows from operation witnessed phenomenal increase of 166 percent to Rs 3.371 billion from Rs 1.267 billion despite adverse circumstances created by visa restrictions, reduction in operation to regional/Far East markets due to ban on over-flying of Indian airspace.

The board was apprised that the new marketing strategy contributed in improving cash flows as the available capacity because of reduction in the Far East operation was re-deployed on high yield routes.

The following shows the airline's full-year earnings in millions of rupees.

====================================================                     Jan-Dec    Jan-Dec    Changes (%)  ====================================================  Revenue             43,673     43,608           0.14  Expenditure         38,097     43,242         -11.89  Financial Exp.       2,352      2,600          -9.53  Profit before tax    2,110     (1,881)                Profit after tax     1,873     (2,205)                ====================================================

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