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Port Moresby
May 17, 2021
Business

PNG Air Records K4.21 Million Profit

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By Fabian Hakalits – EM TV News, Port Moresby

In a short period of time after launching its rebranding and introduction of new ATR aircrafts in November 2015, PNG Air has recorded a profit of K4.21 million in the Port Moresby Stock Exchange.

PNG Air released its Appendix 4B for the 2015 year to the Port Moresby Stock Exchange on March 16.

In an interview with Chief Commercial Officer, Paul Abbot, he said that the company’s achievement has been attributed to all airline workers across the nation.

These are revenue from regular passenger transport operations that increased by approximately 29 per cent compared to previous years, where substantial losses were made.

“We hope and we are really confident that now we have the ATR in operation. We start to see the revenue building as well. So that in combination with improved efficiency in the organisation will be very good for the company and also the shareholders,” he said.

Abbot attributed the significant turnaround to PNG Air’s re-launch and its new ATR aircrafts, which was also commended by its directors.

The directors commented in the document saying that 2015 was a momentous year for the airline.

PNG Air introduced the first new ATR 72-600 into its fleet.  Five more are expected by the end of 2017.

Abbot said that cost operations of the ATR have generated better returns and increased revenue base.

“So the revenue actually declined over the years because of reduction and charter with contraction of the resource sector.

“Despite that there was greater passenger revenue and freight revenue, savings in both direct and indirect costs resulting from an efficiency drive over the past several years. And this has seen the airline generate an operating profit before abnormal and tax of K4.21 million for the year, a significant turnaround compared to the pre-tax operating losses for prior years,” he said.

Abbot added that PNG Air is confident in generating more revenue to build and improve efficiency in the airline market. 

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