After over two decades, PIA records Rs26.2bn net profit, reveals Khawaja Asif
- Sara Habib
- April 9, 2025
- 12:14 pm
- 37
- Current Affairs
PIA financial turnaround is making headlines as the national airline reports a strong recovery after years of losses. For the first time since 2003, PIA earned a net profit of Rs26.2 billion in the fiscal year 2024. According to Defence Minister Khawaja Asif, this result is a major step forward in Pakistan’s ongoing efforts to privatize the struggling airline.
Historic Profit After 21 Years
PIA posted an operating profit of Rs9.3 billion and an operating margin of over 12%. These figures match international airline standards. The last time PIA saw profits was more than two decades ago. Now, this recovery marks a true shift in the airline’s performance.
Key Reforms Driving Growth
Khawaja Asif shared that the airline underwent major changes. These included cost control, job cuts, and route optimization. The workforce was reduced by nearly 30%. Unprofitable routes were removed, and the fleet was used more efficiently. These reforms helped reduce costs and improve earnings.
Privatization Plans Move Ahead
With positive results in hand, the government is once again pushing for privatization. The PIA board approved the 2024 financial results. Bloomberg reported that the airline achieved Rs5.01 earning per share. This success has sparked renewed interest from potential buyers.
Overcoming Past Challenges
Previously, the airline faced deep losses. Planes were seized overseas. Flights were cancelled. The airline nearly defaulted and relied on government bailouts. A past attempt to sell the airline failed when bids fell short of the $306 million mark.
This time, the government has wiped out nearly 75% of PIA’s debt. According to Usman Bajwa from the Privatisation Commission, this move has revived investor interest.
Still Facing Competition
Despite this progress, PIA holds only 23% of the domestic market. It operates 34 aircraft. Middle Eastern airlines dominate with 60% market share. While PIA has agreements with 87 countries, it lacks direct international routes, making it hard to compete globally.
For more detailed insights, visit:
🔗 Bloomberg – PIA’s Turnaround
🔗 Dawn News – Aviation Updates
