Karachi, Pakistan – April 9, 2025 — Pakistan International Airlines (PIA) has reported a net profit for the first time in over two decades, signaling a major turnaround for the national flag carrier. After recording a loss of Rs. 104.5 billion in the previous year, the airline has now achieved a net profit of Rs. 2.26 billion for the year ended December 2024.
According to Bloomberg, PIA’s earnings per share (EPS) stood at Rs. 5.01, with an operational profit of Rs. 3.9 billion. The airline also recorded an operating margin exceeding 12%, showcasing improved efficiency and financial management.
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This significant turnaround follows sweeping reforms aimed at restructuring the struggling airline. Key changes included a 30% workforce reduction, closure of loss-making routes, enhanced cost control, and streamlined operations. A crucial element in this financial rebound was the restructuring of PIA’s balance sheet, which saw most of the airline’s Rs. 660 billion debt transferred to a separate government-owned holding company.
The airline’s past struggles — including grounded planes, cancelled flights, and default fears — were compounded by failed privatization attempts. The first privatization round in 2024 failed due to undervalued bids below the $306 million threshold. However, with the debt burden eased and operational performance improved, the government is preparing for a second privatization round, expected to attract renewed interest from investors.
Finance costs dropped by a dramatic 87% to Rs. 10.1 billion, helping to cushion the blow from a 14% decline in revenue, which now stands at Rs. 204 billion. With the easing of financial pressure, PIA’s improved operational efficiency is gaining investor attention.
As the government ramps up efforts to make PIA an attractive acquisition target, industry experts are cautiously optimistic. With debt liabilities off its books and a more sustainable cost structure in place, PIA appears to be on a path to long-term recovery.
