Pakistan International Airlines incurred Rs 2.5 billion losses during 2004, which was in sharp contrast to the target of Rs 3 billion profit.
The recently issued FY05 annual report of the State Bank has attributed this revenue loss to persistent pressure on oil prices in the international market that led the aircraft fuel bill of the Corporation to reach Rs 21.7 billion, compared to the target of Rs 15.7 billion.
The report says that the depreciation of Pak rupee against dollar in 2004 adversely impacted the profitability of the corporation for the year.
During the period under review the corporation inducted nine new aircraft, added three new international destinations and a number of services on regional routes were restored.
The addition to the fleet during 2004 positioned the airline to expand its services. Consequently, the Corporation was able to increase its passenger capacity by 17.9 percent, which was satisfactorily absorbed.
The report says that PIA revenue reached a record Rs 61 billion in CY04, registering a growth of over 20 percent, relative to CY03.
This was the highest revenue growth rate in the past 20 years, which was achieved despite the competitive pressures in the domestic routes.