- Web Desk
- 9 Hours ago
PIA fails to secure loans amid daily flight cancellations
- Web Desk
- Oct 25, 2023
KARACHI: The financial troubles of Pakistan International Airlines (PIA) are far from being over as it has been unable to secure loans from banks, resulting in significant losses. Sources within the airline have cited a lack of government guarantees as the primary reason for banks refusing to extend loans.
The financial woes have been exacerbated by daily flight cancellations, which are inflicting a substantial financial toll. PIA’s operations have incurred losses of approximately Rs 5 million each day due to the inability to maintain regular flight schedules.
This crisis reached a critical point with the cancellation of over 300 flights, primarily attributed to the non-supply of aviation fuel.
Over the past two weeks, PIA has suffered a staggering loss of Rs 8 billion, highlighting the severity of the financial crisis. These losses have placed the airline in a precarious position, necessitating urgent measures to secure the necessary funds to stabilise its operations.