PIA records its first annual profit in 21 years, signaling a major financial turnaround as Pakistan plans to privatize the national airline amid growing investor interest.
Based on certified financial statements, PIA reported earnings per share of Rs5.01 for the year that ended in December, marking its first profitable year since 2003, according to papers seen by Bloomberg.
The PIA board of directors also approved the airline’s financial report on Tuesday, according to Express News, which showed that Pakistan International Airlines made Rs204.16 billion in revenue for 2024 but incurred Rs175 billion in expenses, like as personnel wages, aircraft leasing, and fuel costs.
The report states that in 2024, PIA made a net profit of Rs26.2 billion and an operational profit of Rs9.357 billion.
The report further pointed out that Pakistan International Airlines lost Rs104 billion in 2023 even though it made Rs237 billion in revenue.
Defense Minister Khawaja Asif verified on social media that the airline’s 2024 annual results had been approved by the PIA board. He emphasized that PIA made a net profit for the first time in 21 years. Based on the findings, the airline made PKR 9.3 billion in operational profit and PKR 26.2 billion in net profit in 2024.
Khawaja Asif added that PIA’s operating margin surpassed 12%, which is comparable to some of the top airlines in the world.
He pointed out that the last time PIA turned a profit was in 2003, following a 20-year period of losses. On the other hand, PIA underwent extensive improvements with government backing.
Significant staff and cost reductions, the stabilization of lucrative routes, the removal of routes that resulted in losses, and a reorganization of the balance sheet were among the improvements, according to the defense minister.
He underlined that PIA’s return to profitability will help the nation’s economy in addition to enhancing its reputation.
The outcomes represent a significant comeback for an airline that has seen increasing financial losses in recent years due to things like planes being seized at international airports, flights being canceled, and near-default situations.
The airline’s primary lifeline was provided by several government bailouts, but these funds have since run out.
Last year, Pakistan’s attempt to sell the airline was unsuccessful since the first proposal was below the $306 million minimum price. The government is attempting to privatize PIA once more, though, and initial bids are anticipated later this month.
The government has taken almost 75% of the airline’s debt off its books to make the sale more appealing. According to Usman Bajwa, secretary of Pakistan’s privatization commission, in February, the action has sparked increased interest from possible purchasers, with businesses that had previously taken part in the bidding process now expressing greater confidence.
The substantial burden of debt servicing has overshadowed recent operational benefits.
However, by putting measures in place, such as cutting staff by almost 30%, closing unprofitable routes, and increasing fleet utilization, PIA has been attempting to achieve operational profitability.
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NEWSON – Pakistan International Airline turns a profit
Q1.Did Pakistan International Airlines (PIA) make a profit in 2024?
Yes, Pakistan International Airlines (PIA) announced a net profit of Rs26.2 billion in 2024, making it the airline’s first profitable year since 2003. This marks a major financial turnaround after 21 years of consistent losses.
Q2.What is the revenue and profit breakdown for Pakistan International Airlines in 2024?
In 2024, Pakistan International Airlines reported:
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Total revenue: Rs204.16 billion
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Operational profit: Rs9.357 billion
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Net profit: Rs26.2 billion
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Expenses: Rs175 billion
This positive margin was achieved despite a challenging aviation environment.
Q3.What are the reasons behind Pakistan International Airlines return to profitability?
Pakistan International Airlines’ 2024 profit can be attributed to strategic improvements, including:
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30% workforce reduction
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Elimination of loss-making routes
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Fleet optimization and route stabilization
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Restructuring of financial liabilities
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Enhanced revenue from core operations
Q4.When was the last time Pakistan International Airlines made a profit?
The last profitable year for Pakistan International Airlines was 2003. The 2024 profit represents a significant comeback after 21 years of financial losses.
Q5.Is the government privatizing Pakistan International Airlines?
Yes, the Government of Pakistan is actively moving toward the privatization of Pakistan International Airlines. As part of this effort:
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75% of PIA’s debt has been removed from its books
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New bids are expected to be submitted soon
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Privatization is aimed at improving long-term sustainability and efficiency
Q6.What strategic actions did Pakistan International Airlines take to become profitable?
To achieve profitability in 2024, Pakistan International Airlines implemented several critical measures:
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Reduced staff by nearly 30%
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Cut unprofitable flight routes
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Increased utilization of its aircraft fleet
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Stabilized profitable international and domestic routes
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Underwent balance sheet restructuring
Q7.Who confirmed Pakistan International Airlines 2024 profit?
The 2024 profit of Pakistan International Airlines was confirmed by:
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PIA’s Board of Directors
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Defense Minister Khawaja Asif, who shared official details and stated that the operating margin exceeded 12%, which is on par with top global airlines.
