Lahore – In a remarkable financial turnaround, Pakistan International Airlines (PIA) has announced a net profit for the first time in more than two decades.
According to Defence Minister Khawaja Asif, the national carrier posted a net profit of Rs 26.2 billion for the fiscal year 2024. This achievement comes after a 21-year streak of losses, with the last recorded profit dating back to 2003.
Strong Operational Performance
PIA also reported an operating profit of Rs 9.3 billion, achieving an impressive operating margin of over 12%—bringing its performance closer to leading international airlines. This positive shift is attributed to a series of internal reforms including:
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Strategic route optimization
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Cost-cutting initiatives
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Workforce rationalization
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Improved financial management
The airline’s 2024 financial statements, approved by its Board of Directors, revealed earnings per share of Rs 5.01, as confirmed by audit documents cited by Bloomberg.
Privatization on the Horizon
With the airline now financially stable, the government is preparing for a renewed privatization effort. Previous attempts to sell the loss-making carrier failed, but this time, most of PIA’s debt—once a major deterrent—has been removed from the government’s balance sheet.
According to Usman Bajwa, Secretary at the Privatisation Commission, “All the debt has been canceled, and former bidders are showing renewed interest.”
Overcoming Past Struggles
PIA has faced significant financial hardship in recent years, surviving only through government bailouts. Severe cash flow issues even led to flight cancellations and aircraft seizures abroad.
Despite holding a 23% share in Pakistan’s domestic aviation market, the airline continues to struggle internationally. Its fleet of 34 aircraft is overshadowed by Middle Eastern carriers that dominate 60% of Pakistan’s international air traffic.
However, the airline’s turnaround is attributed to:
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A 30% workforce reduction
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Elimination of loss-making routes
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Efficient fleet utilization
A New Era for PIA
After years of financial instability, this profit milestone signals a new era for Pakistan’s national flag carrier. The upcoming privatization move could further strengthen its market position and global competitiveness.