For the first time since 2003, Pakistan International Airlines (PIA) has achieved a net profit, marking a historic turnaround from the losses of Rs. 104.5 billion reported in the previous year. The airline’s financial results for 2024, as approved by its board of directors, indicate operational earnings of Rs. 3.9 billion and a net profit of Rs. 2.26 billion, with earnings per share standing at Rs. 5.01. The operating margin surpassed 12 percent during this period.
This impressive recovery follows extensive reforms, including a nearly 30 percent reduction in the workforce, targeted cost-control initiatives, and a focus on profitable routes while discontinuing consistently loss-making operations. A restructuring of the airline’s balance sheet has played a pivotal role in driving this profitability.
In the face of past challenges, such as grounded aircraft, flight cancellations, and fears of default, PIA’s operational expenses have eased, with finance costs dropping by 87 percent to Rs. 10.1 billion. However, revenue saw a 14 percent decline to Rs. 204 billion. To boost investor appeal, the government shifted Rs. 660 billion in debt to a separate holding entity, paving the way for renewed privatization efforts. Despite an unsuccessful attempt in 2024, new bids are expected later this month, with increased optimism for success.
Through these strategic measures, PIA is taking significant strides toward regaining its stability and attractiveness as a viable enterprise.