PIA posts operating profit of Rs. 9.3 billion in 2024
Pakistan International Airlines (PIA) posted an operating profit of Rs. 9.3 billion in 2024, despite a 16.8%
drop in operating revenue, which fell to Rs. 204.16 billion,
according to the Economic Survey 2024–25. This marks the airline’s second
consecutive year of operational profitability, signaling a notable
turnaround amid persistent industry challenges.
The positive earnings were primarily driven by
aggressive cost-cutting measures, which slashed operating
expenses by 20.8%, down to Rs. 194.81 billion from Rs.
235.32 billion the previous year. Key initiatives included workforce
reduction—from 7,800 to 6,900 employees—and the separation of core
aviation operations from non-core ventures, significantly enhancing
operational efficiency.
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Drop in Passenger Traffic and Operations
Despite the financial gains, passenger
and flight activity declined:
·
Passenger traffic
fell from 4.5 million in 2023 to 3.9 million in 2024
·
Revenue hours flown
dropped to 82,043, from 90,067
·
Flown kilometers
declined to 51.98 million, compared to 57.12 million in 2023
·
Passenger load factor
dipped slightly to 81.8%, while the revenue
load factor rose to 64.4%, continuing a post-2020
upward trend
However, PIA expanded its fleet
to 33 aircraft and nearly doubled its route length to 593,063
kilometers, reflecting a push to rebuild its international footprint.
Europe Reentry and Strategic Partnerships
A key development in 2024 was the clearance
from the European Union Aviation Safety Agency (EASA), paving the way
for PIA’s return to European skies. The airline is scheduled to resume
flights to Paris in January 2025, and has secured interline
agreements granting access to 21 destinations across Europe and the UK.
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PIA also overhauled its digital
infrastructure, launching revamped booking platforms and
integrating with global travel services like Wego and Google
Flights. Strategic partnerships with carriers such as Air
France-KLM and Alaska Airlines have further
bolstered its international reach.
Looking Ahead
While
PIA’s return to profitability has revived discussions on privatization,
officials acknowledge that continued efforts are essential. The drop in
scale—both in terms of flights and passengers—suggests that long-term
sustainability will depend on maintaining operational efficiency while
restoring market share.
Source: techjuice