PNG Air records revenue hike

Business

PNG Air recorded a 27 per cent increase in passenger revenue in the first half of the year compared to the same period last year.
The airline said in a statement it continued to develop its network of scheduled services around the country and to improve the quality of the services.
PNG Air introduced its sixth ATR 72-600 aircraft in June.
Airline chief executive Muralee Siva said the airline was able to increase passenger revenue by nearly 27 per cent compared to the corresponding period in 2016, despite having the same overall capacity.
“This indicates the attraction of the ATRs we have been bringing in to replace the older Dash-8 aircraft and justifies the strategy we’ve followed,” he said.
“The ATRs were also a big part of PNG Air winning the contract to provide all aviation services to Newcrest – the country’s biggest charter contract.”
As a result of the growth in passenger revenue, the airline reduced its operating losses before abnormal items and tax by more than 50 per cent to K12.83 million compared to the first half of 2016.
“Continued softening of the Papua New Guinea economy, little new activity in the resources sector, foreign exchange issues and the fact the airline is still transitioning to its modern ATR fleet prevented us from achieving profitability this year,” he said.
“But with stability in government, the economy and resource sector are expected to grow.”

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