ISLAMABAD: Pakistan International Airlines (PIA) has reported a significant financial turnaround, marking its first profitable year since 2003 — a major milestone in the national carrier’s long-troubled history. The recovery comes at a critical moment, potentially reinvigorating the government’s efforts to privatise the airline.
Defence Minister Khawaja Asif announced on Tuesday that PIA earned an operating profit of Rs9.3 billion in fiscal year 2024. More impressively, the airline posted a net profit of Rs26.2 billion, ending a two-decade streak of financial losses.
“This is a remarkable achievement,” Asif stated. “It marks a genuine turnaround for the airline and reflects the success of the reforms we’ve implemented.”
The airline’s operating margin surpassed 12%, putting it in line with some of the world’s leading carriers. According to Asif, the transformation was driven by deep restructuring efforts, which included tighter cost controls, workforce optimisation, and strategic route management.
“We restructured with discipline,” he said. “The reforms focused on financial prudence and operational efficiency, and now the airline is positioned to leverage this recovery through privatisation.”
Privatisation Back in Focus
The PIA Board of Directors has approved the airline’s 2024 financial results, with a company spokesperson confirming that earnings per share reached Rs5.01 by the end of December.
This resurgence follows years of turbulence for the national flag carrier, which had been teetering on the edge of default, plagued by mounting losses, aircraft seizures abroad, and widespread operational disruptions. Bloomberg noted that PIA survived mainly through government bailouts — a lifeline that has now run dry.
Previous efforts to privatise PIA faltered after a single bid fell far short of the government’s expectations, offering less than the minimum price of $306 million. However, the government has since renewed its efforts, with a fresh round of bidding expected this month.
To make the deal more attractive to investors, the government wiped out around 75% of the airline’s debt from public records. Usman Bajwa, Secretary of the Privatisation Commission, told Bloomberg in February that this move had revived interest from former bidders.
From Collapse to Comeback
PIA’s financial woes have long overshadowed any operational progress. Despite earlier reforms — including nearly 30% staff reductions, suspension of loss-making routes, and improved aircraft utilisation — soaring debt servicing costs had previously wiped out any gains.
Now, with the debt burden lifted and profitability restored, PIA appears to be entering a new chapter. Whether this turnaround will lead to a successful privatisation remains to be seen, but the airline’s performance in 2024 has undoubtedly put it back on the radar of potential investors — and offered a rare bright spot in Pakistan’s state-owned enterprise landscape.
