PIA earns profit for the first time in 21 years
Pakistan International Airlines (PIA) has made a historic financial turnaround, reporting a net profit of Rs26.2 billion for the year 2024—marking its first return to profitability in over two decades.
According to a press release issued
on Tuesday, the national flag carrier also recorded an operating profit of
Rs9.3 billion, a significant improvement after years of financial losses. The
last time PIA reported a profit was in 2003.
Reforms
Driving Recovery
The airline credited its resurgence
to a series of reforms led by the Government of Pakistan, including cost and
workforce rationalisation, route optimization, and financial discipline through
balance sheet restructuring.
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In a post on X (formerly Twitter),
Defence Minister Khawaja Muhammad Asif commented,
“The people of Pakistan may have
lost hope in what was once the pride of the nation. But with the government’s
comprehensive reforms, PIA is now in a position to build on this financial
performance as it moves through the privatisation process.”
PIA’s operating margin
exceeded 12%, a figure the airline claims is on par with some of the world’s
leading carriers.
The reforms included:
- Reduction in workforce and operational expenditures
- Stabilisation of profitable routes
- Discontinuation of loss-making routes
- Restructuring of legacy liabilities and non-core assets
PIA stated that this turnaround will
not only enhance the airline’s credibility but also contribute positively to
Pakistan’s broader economic outlook.
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approves restructuring and investment
Financial
Restructuring Details
In March, Defence Minister Asif
informed the National Assembly about PIA’s financial restructuring initiative, which aimed to eliminate
longstanding liabilities and make the airline viable for privatisation. The
plan includes:
- Removal of Rs268.7
billion in bank debt
- Clearance of Rs170
billion in government debt
- Settlement of Rs188.3
billion in legacy operational liabilities
- Resolution of Rs44
billion in employee-related liabilities
- Offloading of non-core
assets worth Rs26 billion
A Bloomberg report also confirmed the airline achieved earnings per share of Rs5.01 for the
year ending December 2024.
Source: Business Recorder