KARACHI, Nov 17: The interim report of the PIA shows revenue of Rs15.981 billion (July-September 2005) compared to Rs14.556 billion and cost of services of Rs15.409 billion compared to Rs12.689 billion in the corresponding period of fiscal year 2004.

The PIA achieved a growth of 10 per cent in turnover during July-September 2005 over the same period of 2004 while the increase in operating expenses, excluding fuel, was restricted to 1.1 per cent.

Passenger traffic improved by 11 per cent over the corresponding period of last year and a record seat factor of 80 per cent was achieved during the quarter despite increase in the capacity of the existing fleet.

The unprecedented increase in fuel prices has offset these positive indicators. Had fuel prices remained at last year’s level, the operating profit in 2005 would have been Rs736 million.

The fuel bill percentage of 32 of the total turnover in the third quarter of 2004 rose to 45 per cent in the third quarter of 2005 and fuel price increased from Rs74.88 to Rs111.39 per USG from the last corresponding quarter.

The breakdown of non-fuel expenses shows that there was no major increase in expenses.

Similarly, getting a domestic seat factor of 84 per cent, compared to a budgeted seat factor of 74 per cent for 2005 and 67 per cent seat factor of last year, is a landmark achievement. All routes have shown improvement in the third quarter of 2005 as compared to 2004.

The UK seat factor increased from 71 per cent to 80 per cent, Europe form 63 per cent to 73 per cent, North America from 69 per cent to 79 per cent, Gulf from 78 per cent to 82 per cent, Saudi Arabia from 83 per cent to 88 per cent, Pearl from 54 per cent to 60 per cent and China-Japan from 66 per cent to 71 per cent while the regional route seat factor increased from 61 per cent to 62 per cent and domestic from 67 per cent to 84 per cent.

The 12 per cent aggregate increase of Rs4.945 billion in turnover over the last year corresponding period includes Rs4.550 billion in passenger turnover, Rs364 million in freight/mail and Rs31 million in all others areas. Ten per cent aggregate turnover increase of Rs1.426 billion over the corresponding quarter of 2004 shows that passenger turnover increased by Rs1.327 billion, freight/mail by Rs52 million and Rs47 million in all other areas.

The PIA had budgeted a system seat factor of 78 per cent for 2005 whereas a seat factor of 79 per cent on international routes was achieved, comparing to 72 per cent seat factor on international routes last year.

The PIA was among the five top airlines by attaining 80 per cent seat factor compared to Cathay Pacific (77.3 per cent), Emirates (74.6 per cent), Singapore Airline (74.1 per cent), and Thai Airways (72.5 per cent).

Since price is not the only factor for enhanced profitability, more turnover was generated by enhancing seat factor with reduced fares.

The PIA has also become one of the first 50 airlines to get JOSA Certification, a prerequisite of JATA Regulations, which provides a basis of code sharing agreements with renowned airlines.—APP