KARACHI, Aug 27: Pakistan International Airlines Corporation earned a pre-tax profit of Rs1.527 billion for the 1st half of the current financial year, according to the half yearly report for the period ending June 30, 2003 presented at the 27th meeting of PIA Board of Directors held here on Wednesday.

The board discussed and approved the half yearly accounts. Earlier, external auditors of the corporation reviewed the accounts, and cleared by the audit committee.

The profit for the 1st half was around Rs1 billion more than the corresponding period of the last year.

The board was apprised that improved deployment of extra capacity in high yield markets like UK, weeding out of uneconomical routes, expanded operation with the inclusion of new destinations of Chicago and Mushhad helped PIA in attaining this profitability.

The achievement was made despite absorbing additional cost of Rs1 billion on account of increase in fuel prices and suspension of fights to India and Far Eastern countries.

The board was apprised that the airline employees pay was increased by 20pc with effect from January 2003.

The board appreciated the management efforts in improving overall performance of the national carrier.

Airline has increased passenger capacity by 9pc during the period. The airline achieved passenger growth of 10pc in the first half of 2003 over the same period last year, besides more than 9 per cent increase in the international as well as domestic markets excluding Haj.

It was pointed out that improved performance of the airline operations has had a positive reflection on the shares of the Corporation in the Stock Exchange with “A” class share of Rs10 being currently quoted at Rs22 and a total turnover of 460 million shares was traded during the half year.

According to PIA, the board will resume its deliberations on Thursday.

The meeting, chaired by the chairman PIAC, Ahmad Saeed, was attended, among others, by directors general Civil Aviation. Air Marshal (Rtd) Pervez Akhtar Nawaz, Asad Ali Khan, M.H.K Khaishgi, Dr Sughra Junejo, Syed Fazal Agha, Javed Saifullah Khan and S. Ali Raza.—APP