PIA Earns Profit After 21 Years, Moves Toward Privatization
Pakistan International Airlines (PIA) has posted a net profit for the first time in over two decades which signals a major financial turnaround for the long-struggling national carrier.
Based on financial performance in the year 2024, PIA made an operating profit of Rs 3.9 billion and a net profit of Rs 2.26 billion, with an operating margin of more than 12%—a figure comparable to that of some of the world’s best airlines. However, other reports quote the net profit as high as Rs 26.2 billion, which highlights the complexity of accounting in the transition period.
This marks PIA’S first profitable year since 2003. In the past, it faced many problems like heavy debts, cancelled flights, and even its planes being held at foreign airports because of unpaid bills.
Defence Minister Khawaja Asif, who also oversees aviation, praised the achievement, calling it a “real turnaround” for the national carrier. He added that this success strengthens the airline’s position as the government prepares for its privatization.
“The airline is now ready to benefit from its financial recovery,” Asif stated in a post on X (formerly Twitter).
PIA’s financial recovery comes after three years of restructuring. The airline significantly cut its workforce, removed loss-making routes, improved aircraft usage, and implemented stricter financial controls. One of the key steps in this process was the transfer of a large part of PIA’s debt, nearly three-quarters, to government accounts, easing pressure on the airline’s balance sheet.
In recent years, PIA had been kept afloat mainly through government bailouts. The airline was on the brink of collapse, with grounded flights, seized aircraft abroad, and unpaid debts piling up. With those issues now largely addressed, officials believe the airline is in a better position to attract serious buyers.
The government’s earlier attempt to sell PIA in 2024 failed when the only bid received fell short of the $306 million minimum price. Now, with renewed interest and a cleaner financial record, new bids are expected later this month.
This time around, all the debt has been cancelled, and the former bidders have welcomed it with renewed interest.”
-Usman Bajwa, Secretary at the Privatisation Commission
Despite the positive numbers, PIA continues to face serious competition and structural issues. The airline holds just 23% of Pakistan’s domestic market and struggles internationally, where Middle Eastern carriers dominate nearly 60% of Pakistan’s air traffic.
The airline’s relatively small fleet of 34 aircraft also limits its ability to expand and compete effectively, even though it holds valuable landing slots and agreements with 87 countries.
For now, PIA’s profit offers a rare moment of hope for a company that has long symbolized state-sector inefficiency. If the privatization process moves forward successfully, it could reshape Pakistan’s aviation landscape.
But experts warn that continued reforms, modern management, and investment will be key to keeping the airline in the skies and out of the red.
