In a major financial turnaround, Pakistan International Airlines (PIA) has reported its first annual net profit in 21 years, achieving a net gain of PKR 26.2 billion for FY 2024. The announcement was confirmed by Defence Minister Khawaja Muhammad Asif following a PIA board meeting, and later by the airline in an official statement.
The operating profit stood at PKR 9.3 billion ($33.14 million), a marked shift from decades of chronic losses that had pushed the national carrier toward collapse.
This long-awaited financial milestone comes just ahead of the government’s second attempt to privatize the airline. A previous effort in 2023 failed, with only one bid that fell well short of the desired $300 million valuation.
What Led to the Turnaround?
- The government offloaded nearly 80% of PIA’s legacy debt, absorbing it into national accounts.
- Additional financial restructuring cleaned the remaining debt from PIA’s books.
- The airline implemented aggressive reforms, including:
- Exiting loss-making routes.
- Reducing workforce size.
- Cutting unnecessary operational costs.
For years, PIA had relied on government bailouts, with mounting debt making it unsustainable. The turnaround eliminates those burdens, making the airline more appealing to potential buyers in the upcoming privatization push.
From Grounded Planes to Profitable Skies
Just last year, PIA was teetering on the edge. It faced international flight suspensions, fuel shortages, and had aircraft impounded abroad due to unpaid bills.
Now, with its financials cleaned up and a leaner operational model in place, PIA’s future looks promising, at least on paper. Whether this new profitability sustains or not will depend on the success of the privatization and ongoing reforms.
