Tanzania: Precision Air Profit Losses Double

PRECISION Air (PW) pre-tax profit loss has almost doubled for the year ending last December due to increase cost of sales.

The profit loss of PW might deepening further thus year due to coronavirus pandemic that saw a

number of airlines cutting flights to reduce expenses.

PW, the largest airline in the country in term of fleet size, pre-tax profit loss deepen to 31.13bn/-at the end of last December from 17.97bn/-of similar period previous year.

The statement issued yesterday showed that total revenue increased almost 30 per cent to rake in 125.33bn/- from 98.26bn/-.

The airline sales of ticket earnings increased to 95.42bn/-from 75.08bn/-but was not enough to offset the costs of sales to post a good profit.

Thus, the revenue was eaten up by cost of sales that stood at 105.69bn/-compared to 74.56bn/-of 2018.

Other expenses, marketing and administrative, also climbed up to 35.48bn/-from 26.89bn/-of 2018.

The expenses plus financial costs reduced a great deal the profitability of the airline last year to drive further down earnings per share to minus 198/34.

PW listed on Dar es Salaam Stock Exchange (DSE) its share hardly trade and stagnated at 400/-has a fleet of 10 aircrafts which are in operation while three a grounded.

After the Covid-19 broke in the country mid-March, a number of airlines in the country sent workers on unpaid leave while others cut salaries by more than 50 percent due to significant drop in flights.

PW, with about 400 staff, also took some measures to reduce expenses including cutting salaries of its workers and sent some unspecified number of staff to unpaid leave.

However, the recent announcement of PW eyeing to ventures into cargo business might boosts its revenue portfolio.

The report states, PW received approval from the Tanzania Civil Aviation Authority (TCAA) to use its passenger cabins for cargo.

PW is a Tanzanian airline based at Julius Nyerere International Airport in Dar es Salaam, with a mini-hub at Mwanza Airport.

Also operates scheduled passenger services to Nairobi, Kenya Entebbe, Uganda and number of airports in Tanzania.