In a remarkable turnaround, Pakistan International Airlines (PIA) is on the verge of announcing its first annual profit in more than two decades, signaling a new chapter for the beleaguered national carrier. According to exclusive financial documents obtained by Bloomberg, PIA achieved earnings of Rs5.01 per share for the fiscal year ending December 2024, marking its first profitable year since 2003. This milestone comes as the Pakistani government prepares to relaunch its privatization efforts for the airline later this month.
The audited financial statements, which are awaiting board approval before their public release, highlight a dramatic recovery for PIA. Once plagued by chronic losses, grounded aircraft, and a tarnished reputation, the airline has clawed its way back from the brink. In recent years, PIA faced humiliating setbacks, including planes impounded at foreign airports and a near-default on its financial obligations. Government bailouts kept the carrier afloat, but with those funds now depleted, PIA’s turnaround is a testament to its recent operational overhaul.
The airline’s resurgence has not come without sacrifice. PIA slashed its workforce by nearly 30%, axed unprofitable routes, and optimized its fleet to boost efficiency. These reforms, while painful, have begun to bear fruit, allowing the airline to achieve operational profitability despite the heavy burden of debt servicing. To sweeten the deal for potential buyers, the government has also wiped approximately 75% of PIA’s debt off its balance sheet, a move that has reignited interest from investors.
Last year’s attempt to privatize PIA fell flat when the highest bid failed to meet the government’s $306 million minimum threshold. Undeterred, Pakistan is gearing up for a second shot at divestment, with initial bids due in April 2025. Usman Bajwa, secretary of Pakistan’s privatization commission, noted in February that companies previously involved in the bidding process are now more optimistic, buoyed by PIA’s cleaner financial slate and improved performance.
While PIA declined to comment on the pending results, the anticipated profit announcement could shift perceptions of the airline from a national liability to a viable investment opportunity. As the board prepares to review the figures, all eyes are on whether this phoenix-like rise will finally pave the way for a successful sale, ending decades of turbulence for Pakistan’s flagship carrier.
