Pakistan International Airlines (PIA) has recorded a net profit for the first time since 2003, reversing its previous year’s loss of Rs. 104.5 billion. The airline’s board has approved its 2024 financial results, which reflect a significant turnaround. According to Bloomberg, the airline posted a net profit of Rs. 2.26 billion and an operational profit of Rs. 3.9 billion, with earnings per share standing at Rs. 5.01. Notably, PIA also achieved an operating margin above 12 percent.
This positive performance follows major internal reforms. The airline reduced its workforce by nearly 30 percent, focused on profitable routes, shut down persistently loss-making operations, and implemented stronger cost control measures. A key factor contributing to the profit was the restructuring of PIA’s balance sheet, helping the carrier overcome long-standing financial and operational inefficiencies.
Read more: Pakistan Government to Restart PIA Privatization Process
In recent years, PIA faced serious challenges, including grounded aircraft overseas, flight cancellations, and looming fears of default. An earlier attempt to privatize the airline failed in 2024 due to undervalued bids below the $306 million mark. However, the government is preparing a second privatization phase, with new bids expected soon.
To make PIA more appealing to investors, the government has shifted most of the airline’s Rs. 660 billion debt to a separate state-owned holding company. This move, along with an 87 percent drop in finance costs (now at Rs. 10.1 billion), has significantly reduced operational losses, despite a 14 percent decline in revenue to Rs. 204 billion. Interest from previous bidders has revived, largely due to these financial adjustments.
Previously, high debt servicing costs continually undermined PIA’s operational improvements. Now that much of that burden has been removed, the government is optimistic that investor confidence will grow and that the airline will become a viable investment in the upcoming privatization round.
