Pakistan International Airlines reports net profit after two decades of losses

On April 9, 2025, the Pakistan International Airlines (PIA) announced a significant financial milestone by achieving a net profit for the first time in 21 years. The airline reported that it earned an operational profit of Rs3.9 billion and a net profit of Rs2.26 billion for the fiscal year 2024. This accomplishment follows extensive reforms and restructuring efforts that aimed to stabilize the airline's financial health and operational effectiveness. Key reforms included reducing manpower and expenditures, focusing on profitable routes while shutting down loss-making ones, and restructuring the airline’s balance sheet to facilitate this turnaround. Defence Minister Khawaja Asif, who also oversees the aviation portfolio, expressed optimism regarding these financial results, suggesting that they would positively influence the ongoing privatisation process of the airline. The announcement comes as the government seeks to privatize PIA; an effort that faced challenges previously, including the inability to secure a satisfactory bid during the attempted sale last year. The government has since restructured the sale process, relieving the airline of a considerable portion of its debt to attract potential buyers. Historically, PIA has faced severe financial difficulties, including significant losses that led to persistent operational challenges, such as having aircraft impounded at foreign airports and frequent flight cancellations. The financial strain nearly pushed the airline into default in recent years. This new profit marks a pivotal turnaround following years of restructuring and reform aimed at reversing PIA's declining fortunes. The reported profits signify not only an operational success but also showcase the potential for renewed interest from investors in the context of the privatization efforts due to the improving financial conditions. The government has actively divided PIA’s debt load, intending to present a more attractive investment opportunity for those interested in acquiring the airline. With initial bids expected soon, stakeholders are keenly observing how PIA's financial recovery impacts its viability as a privatized entity moving forward.