PIA posts first net profit in 21 years

The board of directors of Pakistan International Airlines (PIA) has approved its financial results for 2024, which show the airline achieving a net profit after around 21 years, a PIA spokesperson said on Tuesday.

PIA (Pakistan International Airlines) has reported a significant financial turnaround for FY2024, posting an operational profit of Rs3.9 billion and a net profit of Rs2.26 billion. The airline’s operating margin exceeded 12%, aligning it with some of the best-performing airlines globally. This marks the first time since 2003 that PIA has achieved a profit.

In recent years, the airline underwent major reforms and restructuring efforts. These included reducing manpower, cutting down expenditures, focusing on profitable routes, closing down loss-making ones, and restructuring its balance sheet. These measures played a crucial role in the company’s financial recovery.

Defence Minister Khawaja Asif, who also oversees aviation, celebrated the airline’s success, linking it to the ongoing privatization efforts. According to reports, this positive financial performance could help make the privatization process more attractive. The government is planning to privatize the airline and has already made adjustments to its debt structure, removing a significant portion of PIA’s debt from government books.

The airline had struggled in recent years, with financial losses causing cancellations, impounded aircraft, and close calls with defaults. However, with these reforms, PIA’s performance has improved, leading to renewed interest from companies in the privatization process. The government is now making another attempt to sell the airline, with bids expected later this month.