PIA Holding narrows net loss to Rs. 15.35 billion in 2024
PIA Holding Company Limited (PSX: PIAHCLA) significantly narrowed its net
loss to Rs15.35 billion for the year ended December 31, 2024 — an 82.41%
improvement compared to a loss of Rs87.26 billion in 2023.
Despite a 7.68% decline in net revenue to Rs239.65 billion, the company benefited from lower operational costs, most notably:
·
Aircraft fuel costs dropped
22.92%
·
Other service costs fell 10.36%
As a result, total cost of services was down 15.88%, lifting gross profit by
42.90% to Rs51.74 billion from Rs36.2 billion a year ago.
However, the company saw mixed results across expense categories:
·
Administrative expenses
surged 36.62% to Rs25.75 billion
·
Distribution costs eased by
3.09% to Rs9.5 billion
·
Other income plunged 91.56%
to Rs2.98 billion
·
Provisions and adjustments
dropped sharply by 91.55% to Rs321 million
Total operating expenses stood at Rs32.59 billion, reversing an operating
income of Rs2.89 billion in 2023.
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returns to profitability after 21 years, Posts Rs26.2 billion net gain for 2024
Profit from continuing operations declined 51.02% to Rs19.15 billion. A loss
of Rs524.6 million was also recorded from discontinued operations.
Other financial highlights include:
·
Exchange losses reduced by 90.78% to Rs2.39 billion
·
Profit before interest and taxes (PBIT)
increased 23.22% to
Rs16.23 billion
·
Finance costs decreased 33.81% to Rs60.23 billion
·
Loss before levy and tax was Rs43.99 billion, down
from Rs77.82 billion
After adjusting for a minimum tax
levy of Rs1.54 billion and taxation income of Rs30.18 billion (compared to a tax
expense of Rs7.67 billion in 2023), the loss
before income tax narrowed 42.79% to Rs45.53 billion.
The net loss for
the year settled at Rs15.35 billion,
with:
·
Loss per A Class share at Rs2.93
(down from Rs18.67)
·
Loss per B Class share at Rs1.47
(down from Rs8.33)
This reflects a decline of 84.31%
and 82.35%
respectively.
Equity holders bore
a loss of Rs15.55 billion, while non-controlling
interest contributed a profit of Rs198 million, up 50.58% from
last year.
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reports Rs. 9.3 billion profit despite 17% revenue decline
Privatization Push & Operational Updates
The Government of Pakistan has revived its privatization initiative for Pakistan
International Airlines (PIA), offering a 51% to 100% stake in the carrier after
it reported its first annual profit in over two decades.
PIA posted:
·
Net profit: Rs26.2 billion
·
Operational profit: Rs9.3 billion
To support the privatization process, legacy
debt has been moved to the government’s balance sheet —
addressing a key obstacle in the previous failed attempt.
Additionally, PIA launched a direct
Lahore-Baku route on July
20, expanding its international network.
Key Financials (Rs ‘000)
|
Metric |
Dec-24 |
Dec-23 |
% Change |
|
Net Revenue |
239,652,337 |
259,585,680 |
-7.68% |
|
Aircraft Fuel Cost |
(75,586,032) |
(98,061,940) |
-22.92% |
|
Total Cost of Services |
(187,916,760) |
(223,381,140) |
-15.88% |
|
Gross Profit |
51,735,576 |
36,204,540 |
+42.90% |
|
Admin Expenses |
(25,750,963) |
(18,848,995) |
+36.62% |
|
Operating Expenses |
(32,587,431) |
2,885,815 |
— |
|
Profit from Continued Ops |
19,148,145 |
39,090,355 |
-51.02% |
|
Net Loss |
(15,349,730) |
(87,263,457) |
-82.41% |
While revenue contracted, cost reductions and tax gains significantly helped
PIA Holding reduce its net losses in 2024. With privatization back on track and
profitability returning to the airline unit, the group is showing signs of a
turnaround.
Source: Mettis Global