Pakistan International Airlines posts higher Q2 losses

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Pakistan International Airlines (PIA) has posted a higher second quarter loss after tax from a year ago on rising fuel costs.

The state-owned carrier lost Pakistan rupees (PRs) 6.5 billion ($74 million) in the three months to 30 June, up from the PRs4.12 billion it lost a year before.

Its revenue increased by 12% to PRs29.64 billion, but fuel costs alone jumped to PRs16.45 billion. As a result, the airline's loss before tax rose by 64.9% to PRs6.15 billion.

For the first six months of the year, PIA's net loss increased by 65.2% to PRs10.74 billion. The airline's revenue rose by 13.2% to PRs55.82 billion, and its loss before tax was 68.9% higher at PRs10.12 billion.

PIA said it was also affected by poor economic and security conditions, and an employee strike paralysed operations for five days during the reporting period.

It expects rising fuel costs, exchange rate volatility and the deteriorating economic and security situation to continue hitting its business in the coming months.

Fuel hedging and a business plan to restructure its finance, human resources and information technology divisions should help to reduce costs, the airline added.