During 2020 and 2021, national flag carrier losses decreased primarily due to the COVID-19 outbreak, which limited flight operations.
Pakistan International Airlines (PIA), which had endured significant losses over a previous couple of years, finally turned a profit of over Rs60 million in the first quarter (January-March) of 2023, Parliamentary Secretary for Railways Kiran Imran Dar reported on Friday before the National Assembly.
She stated in response to a “Question Hour” query that the PIA paid a markup of Rs60 million on sporadic financial loans.
The COVID-19 outbreak, which resulted in limited flight operations during 2020, as well as significant cost-cutting measures taken, including a voluntary reduction in employee salaries, rationalization of capacity, and a greater focus on cargo/charter operations during the pandemic, she added, were the main reasons why the national flag carrier’s losses decreased during 2020 and 2021.
She added that capacity and a greater focus on cargo/charter operations during the pandemic were the main reasons why the national flag carrier’s losses decreased during 2020 and 2021.
Following the discussion, the Economic Coordination Committee (ECC) approved the ministry’s recommendations and gave the go-ahead for creating a four-member negotiating committee headed by the Secretary Aviation Division to engage in negotiations with the New York City administration and the hotel union.
The ECC also gave PIA-IL/ RHC permission to use $1.145 million from the remaining balance as bridge funding to start the hotel’s reopening project.