PIA lost Rs5 million every hour in 2017 as annual loss for the year reached Rs48 billion, the company’s financial results revealed on Friday.
The national flag carrier saw its losses for 2017 increase by 7% over the preceding year’s Rs45 billion. The company’s financing cost (including loans and interest payments) increased by 15% for the year under review and reached Rs15.2 billion, making a significant contribution to its losses. Fuel cost for the year also increased to Rs31 billion, 14% up from the Rs27.2 of the previous year.
In October 2018, the Pakistan Stock Exchange had put PIA on its default list and suspended trading of its shares because the company had not held an annual shareholders meeting or submitted its audited annual accounts in the preceding two years, a violation of stock market regulations. The PIA published its financial results today after a gap of 18 months.
The company’s status remains suspended to date as no shares can be traded. The national flag carrier has not paid any dividend to shareholders in the last six years and its stock was trading at Rs4.92 before trade was suspended.
Barring a profit in 2008, PIA has been hemorrhaging money since then and has not been able to pay its debt or fund its operations. This means it is bankrupt. It relies on bailouts from the government to stay afloat. It had reported Rs44 billion in losses during the financial year ending June 2017, taking its total losses in 10 years up to that point to Rs316 billion.