Cash-strapped PIA set for first profit in two decades

Pakistan International Airlines (PIA) is on track to post its first annual profit in over two decades, signaling a major financial turnaround as the government renews efforts to privatize the national flag carrier.

According to audited financial statements reviewed by Bloomberg, PIA reported earnings per share (EPS) of Rs5.01 for the year ending December 2024.

This marks the airline's first profitable year since 2003. The results are pending approval from the airline’s board before being made public. PIA has not commented on the development.

The turnaround comes after years of financial turmoil, including mounting debt, impounded aircraft, canceled flights, and repeated government bailouts—most of which have now been exhausted.

An earlier attempt to privatize the airline in 2024 fell through when initial bids failed to meet the minimum price tag of approximately $306 million.

However, the government has re-launched the privatization process, with new bids expected later this month.

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To attract investors, authorities have written off nearly 75% of PIA’s debt, a move that has reportedly renewed interest from previous bidders, according to Privatization Commission Secretary Usman Bajwa.

The profit follows several internal reforms by PIA, including a 30% reduction in workforce, discontinuation of loss-making routes, and better fleet utilization. Despite these efforts, debt servicing remained a significant financial hurdle.