PIA generated 23.5 billion revenue in the first quarter of the year 2018. This was 7% more than the same period last year. This amounts to PKR 1.6 billion that was generated during this period. The key contributor to revenue growth is increased schedule reliability, product improvement such as cabin cleanliness and refurbishments, food quality, changed attitudes etc. The operational cost also increased denting the revenue of airline by PKR 1.3 Billion.
The costs escalations are primarily due to increase in fuel prices by 31% over the same period and rupee devaluation by 15 %. However, the financial statements have not been approved as yet. Another key factor was an increase in expenditures that were neglected before. The aircraft fleet, the revenue earner entities, were in an unkempt state with several aircraft grounded due to lack of spares and cannibalization, broken down lavatories to dirty seats to worn out carpets.
PIA claims that all of these have been fixed with complete cabin refurbishment of the fleet. The relentless efforts towards getting the long ground aircraft back in the air have yielded results. It is important to mention that PIA had to rely on up to four narrow-body aircraft to keep its flights’ operations from disruptions. Now it has been over six months that PIA has completely relied on its own fleet of dry leased aircraft.
The effects are also noticed by airline’s customers as one passenger Aurangzeb Mubashar commented on these results “I quit flying PIA years ago. Recently I started flying with the national carrier again and I can confidently say that it has come a long way. The almost perfect departing schedule has gained my trust and I look forward to many more flights with PIA.”