Precision Air forecasts profit in two years

Dar es Salaam. The Dar es Salaam Stock Exchange-listed Precision Air Tanzania is looking forward to generating profit in the next two years after suffering a Sh21 billion loss.

The new optimism comes after the airline recorded an operating profit of Sh1.4 billion during the year that ended on March 31, 2018.
The company started recording losses in 2015 whose total stood at Sh83.9 billion. But the losses have dropped significantly following aggressive strategic measures that the company is implementing.
“Our losses have been decreasing every year, and so we are confident that we will start making profit in the next two years,” said Mr Michael Shirima, the company’s board chairman.
Speaking during the 2018 annual general meeting held over the weekend, Mr Shirima said the losses will be cut through the ongoing implementation of a strategic plan.  “We are happy with our performance because we’ve continued to reduce our losses - and this is a good indicator that we will start realising profits in our business,” Mr Shirima said. He said in the 2017/18 financial year, the airline’s losses dropped by 28 per cent compared to the previous year.
Mr Shirima also reported that total revenues increased by 43 per cent in FY-2017/18 compared to FY-2016/17, which increased by seven per cent, from the performance for the 2015/16 financial year. 

He attributed the reported performance to the accrued aircraft ownership cost and depreciation of the Tanzanian currency against the US dollar.
The new group managing director and chief executive officer, Mr Patrick Mwanri, said the airline will focus on efficiency improvement projects, cost control, optimal utilisation of aircraft, cement code share and increasing ancillary revenues as the strategies to turn around the business in the next five years.
“With successful implementation of our five-year strategic plan, we expect to start making profit by the end of 2021,” he added.