After 20 Years of Losses, PIA Reports First Annual Profit

For the first time in over 20 years, PIA is poised to report an annual profit, marking a remarkable turnaround for an airline long plagued by financial losses, cancelled flights, grounded aircraft, and an overdependence on government bailouts.

According to Bloomberg, the airline’s board has approved financial results for 2024, showing an operating profit of Rs 3.9 billion and a net profit of Rs 2.26 billion—a feat not achieved since 2003.

Prime Minister Shehbaz Sharif celebrated the development on X (formerly Twitter), saying, “The skies ahead look brighter, Inshallah!” and credited the team led by Aviation Minister Khawaja Muhammad Asif for their efforts.

This milestone comes at a critical time. The government is preparing for another round of privatization, after a failed attempt last year where the highest bid didn’t meet the minimum asking price of $306 million. This time, however, Pakistan has sweetened the deal—removing 75% of PIA’s debt from its books, significantly improving its attractiveness to potential investors.

Eyeing Privatization

According to Usman Bajwa, Secretary of Pakistan’s Privatization Commission, the move has already sparked renewed interest from earlier bidders. The initial offers are expected later this month.

PIA’s path to profitability hasn’t been easy. The airline implemented a series of major reforms, including:

Reducing the workforce by nearly 30%

Shutting down loss-making routes

Stabilizing and expanding profitable operations

Restructuring its balance sheet to ease financial pressure

A New Chapter for PIA

These efforts helped PIA cut operational losses and improve efficiency—critical steps toward recovery, especially now that government bailouts have ended.

For decades, PIA’s survival depended on state funding, but with those lifelines gone, the airline had no choice but to shape up—or shut down. The latest financial turnaround not only boosts investor confidence but also signals a fresh start for an airline once written off as a national liability.