Islamabad, April 09: Pakistan International Airlines (PIA) has announced a net profit of Rs 2.26 billion for the fiscal year 2024 — marking the first time in 21 years the national carrier has returned to profitability. The last profitable year for PIA was 2003.
According to a spokesperson, the airline also posted an operating profit of Rs 3.9 billion, with an operating margin exceeding 12%, a performance benchmark the spokesperson claimed is comparable to some of the world’s best airlines.
🔑 Key Highlights:
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Net Profit (FY2024): Rs 2.26 billion
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Operating Profit: Rs 3.9 billion
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Operating Margin: 12%+
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Last profitable year: 2003
✈️ Strategic Reforms Behind the Turnaround:
PIA’s return to profitability is being attributed to a series of aggressive reforms and restructuring efforts:
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Route Optimization:
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Loss-making routes shut down
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Profitable routes stabilized and expanded
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Cost-Cutting Measures:
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Reduction in manpower
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Streamlining of expenditures
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Balance Sheet Restructuring:
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Significant debt restructured or offloaded
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Operational cash flow now relatively unburdened
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📢 Privatisation Gains Momentum
Federal Defence and Aviation Minister Khawaja Asif hailed the profit milestone in a post on X (formerly Twitter), saying the development would strengthen the airline’s privatisation efforts.
The government had previously failed to privatize PIA after bids fell below the $306 million threshold.
However, recent moves — including offloading three-quarters of the airline’s debt to government books — have renewed interest among potential buyers.
“All debt has now been removed from the airline’s balance sheet. The stage is set for a cleaner, leaner, and more attractive PIA,” said Privatisation Secretary Usman Bajwa, as quoted by Bloomberg.
💬 Industry Take
Analysts say the turnaround may increase investor confidence in Pakistan’s broader economic reforms, especially in state-owned enterprises.
PIA’s decades-long struggle with financial losses had led to aircraft impoundments, flight cancellations, and frequent defaults.
