KARACHI, Aug 25: The Pakistan International Airlines Corporation (PIAC) recorded a 13 per cent growth in revenues to Rs3.5 billion for the half year ended June 30, 2005. The PIAC Board of Directors in its 288th meeting held here on Thursday, with Tariq Kirmani in the chair, reviewed the financial statement for the period under review and noted that both the passenger and cargo business contributed to this increase.

Mr Kirmani apprised the board of the unprecedented level of international oil prices which had hit the aviation industry hard. It affected PIA’s average fuel price, which increased to Rs92.56 per gallon for the period under review as compared to Rs61.42 per gallon in the corresponding period last year. The resultant increase in fuel bill was to the tune of Rs3.7 billion over the same period last year.

The board was also informed that the Revenue Passenger Kilometres (RPKs), increased to 6,823 million against 6,679 million during the same period in 2004. The seat factor improved to 69.48 per cent as against 67.62 per cent last year. Similarly on the cargo side, Revenue Freight Tons Kilometres (RFTKs) increased by 6.6 per cent to 189 million as compared to 177 million in the corresponding period last year. The load factor was higher at 58.55 per cent against 51.56 per cent during 2004.

The chairman of the PIAC explained that the management was conscious of the adverse effect of the continuing high fuel prices and was taking remedial measures. The emphasis, he said was on cost cutting and revamping marketing strategy.

The members were explained that as a part of reorganization of Marketing Department, four Strategic Business Units (SBUs) had been created namely Passenger Sales, Cargo, Business Tours & Charters and Other Income Streams.

Kirmani informed the board of the new destinations and increase in frequency on various routes the airline had introduced with its existing fleet during the period under review.

The members expressed their satisfaction over the performance of the airline.—APP