PIA fails to secure loans amid daily flight cancellations

The financial challenges facing Pakistan International Airlines (PIA) have taken a dire turn, with the airline struggling to secure loans from banks, resulting in substantial losses. Sources within the airline have indicated that the absence of government guarantees stands as the principal obstacle, causing banks to decline loan requests.

PIA’s ongoing financial woes have been compounded by the daily cancellation of flights, inflicting a considerable economic toll on the airline. The irregular flight schedules have resulted in daily losses amounting to approximately Rs 5 million.

The situation escalated to a critical point with the cancellation of more than 300 flights, primarily attributed to the shortage of aviation fuel. The scarcity of this essential resource has added to the airline’s challenges.

Over the course of the past two weeks, PIA has incurred staggering losses, amounting to a staggering Rs 8 billion. This financial crisis has placed the airline in a precarious position, necessitating immediate actions to secure the essential funds required to stabilize its operations.

The airline industry worldwide has been grappling with unforeseen challenges due to the global pandemic and the economic uncertainties it has unleashed. For PIA, these recent developments underscore the urgent need for solutions to address the financial turmoil and to ensure the continuity of its services.