PIA faces over Rs100b loss this year

The global coronavirus pandemic and the closure of flight operations for the United Kingdom, the European Union and the United States is expected to cost the Pakistan International Airline (PIA) more than Rs100 billion this year and made it difficult for the national airline to meet its revenue target, 24NewsHD TV channel reported, quoting its sources on Monday.

Sources maintained that the national carrier is expected to have a loss of more than Rs100 billion.

PIA had set a revenue target of Rs 196 billion. PIA incurred a loss of over Rs 280 million on five flights due to closure of operations to the United States. PIA was given special permission to operate 12 flights to the United States however the special direct flights licence was revoked after the ‘dubious licence’ hit the national carrier.

The TV channel reported that PIA operated seven flights to the United States including five direct and national carrier operated 23 weekly flights to the UK while six flights were operated to Europe. PIA is expected to have a loss of more than Rs 33 billion in revenue from the UK and Europe due to the EU ban, sources claimed.

Another setback for the PIA is the closure of international flights in Saudi Arabia Hajj has been limited to few thousand people only while Umrah session could also not take place this year amid COVId-19 spread fears to which the national airline is facing a loss of Rs 12 billion, sources maintained. However, in routine days, PIA earned Rs 22 billion a year in the Umrah season.

The coronavirus has also affected regional flight operations due to which the PIA has also been suffering the loss.