Pakistan International Airlines: A New Chapter of Profitability
In a surprising turnaround, Pakistan International Airlines (PIA) has announced a pre-tax profit for the first half of 2025. According to company sources, this marks the first positive financial period for the airline in nearly 20 years. This achievement comes at a crucial time as the government moves forward with plans to privatize the national carrier later this year.
For the six-month period ending in June, PIA recorded a pre-tax profit of Rs11.5 billion (approximately $40.64 million). This is a significant leap compared to the same period in 2024, during which PIA faced losses before taxes. It’s worth noting that last year’s modest profit stemmed from deferred tax adjustments rather than operational success. This year, PIA’s net profit stands at Rs6.8 billion, signaling a potential shift in the airline’s fortunes.
The news is promising, especially considering that the Pakistani government has made the privatization of loss-making state firms, including PIA, a key element of a $7 billion IMF bailout. A company insider revealed that this is PIA’s first profit milestone since 2004, although financial records preceding 2014 aren’t accessible anymore.
The impending privatization represents Pakistan’s most significant move towards privatization in about two decades. The government has drawn interest from five domestic groups for PIA’s potential sale, including Airblue and Lucky Cement, with final bids expected later this year.
High fuel and service costs remain a challenge, but a significant drop in finance costs—after the government assumed approximately 80% of PIA’s legacy debt—has been pivotal in reaching profitability. However, despite this encouraging news, PIA’s equity remains negative, highlighting the fragile nature of its financial recovery.
On another front, the lifting of a five-year ban by Britain on Pakistani airlines has opened doors for PIA to reapply for profitable UK routes. This ban, imposed after a tragic crash and a pilot licensing scandal, had cost the airline an estimated annual revenue loss of around 40 billion rupees. With services to London, Manchester, and Birmingham among its most lucrative routes, this opportunity could further bolster PIA’s financial standing.
Although the road ahead has its challenges, PIA’s recent success offers a glimpse of hope for both the airline and its passengers. The upcoming privatization and resumed international routes could set the stage for a brighter future.
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