ISLAMABAD: Pakistan International Airlines (PIA) has reported a net profit for the first time in 21 years. The airline’s board of directors confirmed the financial milestone.
Defence Minister Khawaja Asif, who also oversees aviation took to X to announce this big news saying the improved performance will help the airline’s privatisation process.
“The PIA Board of Directors approved PIA’s annual performance for the year 2024, according to which PIA achieved net profit after a long period of 21 years,” said Khawaja Asif in his post.
For fiscal year 2024, PIA posted an operational profit of Rs 3.9 billion and a net profit of Rs 2.26 billion. Its operating margin crossed 12%, matching the level of top global airlines. PIA last reported a profit in 2003.
The turnaround follows major reforms and restructuring. PIA cut manpower and slashed operational costs. It focused on profitable routes and closed down loss-making ones. The airline also restructured its balance sheet, which helped stabilize its finances.
The government has tried to sell PIA before. A bid last year failed to reach the minimum price of $306 million. This time, improved financials have drawn fresh interest from buyers.
To attract investors, the government removed a large chunk of PIA’s debt. Bloomberg called the profit a major recovery for the airline. PIA had faced years of losses, grounded planes, and near-defaults.
Now, with stronger financials, PIA is ready for a new round of privatisation bids expected later this month.
