ISLAMABAD, Nov 2: Global increase in prices of aviation fuel offset Pakistan International Airlines’ improved operational indicators, including a 12 per cent increase in revenues during January-September 2005 compared to the corresponding period last year, says a press release on Friday.

Fuel prices rose by 49 per cent over last year and PIA’s fuel expenses went up by Rs6 billion in January-September 2005. This adversely affected the national flag carrier’s revenues.

During the operating period January-September 2005, PIA’s overall expenses excluding fuel, showed an increase of only 6 per cent over the same period last year, while the operating revenues increased by 12 per cent.

If the fuel prices are factored out and taken at the same level as in 2004, PIA during the period January-September 2005, would have made a profit of Rs2.7 billion compared to the Rs89 million loss suffered during corresponding period in 2004.

The airline has, therefore, attributed negative profitability to uncontrolled increase in jet fuel prices in 2005.

“In a world where high fuel prices have led to Chapter 11 and Bankruptcy conditions of a number of international carriers, PIA, due to strategic, vigorous marketing and operational cost control, has managed to grow and compete successfully both domestically and internationally,” said the press release.