LAHORE, Jan 7: The PIA may not achieve its revenue target of 2004-05 due to increase in petroleum prices. PIA chairman Ahmad Saeed said this at the inauguration ceremony of the airline's new complex at the Allama Iqbal International Airport here on Friday.

He said the increase in fuel prices would cost the airline Rs5.8 billion. However, through better management, it might reduce some effects of fuel price hike on its earnings.

"But, it is impossible to meet the budgeted targets," he added. However, he said if the fuel prices came down in future its earnings would certainly improve. He hoped that the airline would meet its revenue target in 2006.

The chairman said PIA achieved record 85 per cent punctuality during 2004, and if Fokker's punctuality was excluded, it would rise to 95 per cent. About the launch of non-stop flights from Pakistan to the United States, he said it would be operated after induction of two Boeing (777-LR) aircraft in 2006.