A rare milestone: PIA reports pre-tax profit for first half of 2025
Pakistan International Airlines (PIA) reported a
pre-tax profit for the first half of 2025 — a rare milestone for the state-run
carrier and a potential boost to the government’s privatisation efforts under
an International Monetary Fund (IMF) bailout program.
PIA, operating under the PIA Holding Company,
posted a pre-tax profit of 11.5 billion Pakistani rupees ($40.64 million) for
the six months ending in June. This marks the
airline’s first half-year profit in over 20 years, compared to losses in the
same period last year. Net profit came in at 6.8 billion rupees.
The announcement comes as Islamabad accelerates plans to sell off the national airline, a key condition tied to its $7 billion IMF rescue package. If successful, the sale would be Pakistan’s first major privatization in nearly two decades.
Read More PIA
returns to profitability after 21 years, Posts Rs26.2 billion net gain for 2024
Debt relief drives profit
While high fuel and operational costs continue
to pressure the business, a sharp decline in finance costs — following the
government's move to absorb around 80% of PIA’s legacy debt last year — played
a critical role in the airline’s return to profitability.
Despite the turnaround, PIA’s balance sheet
remains fragile, with negative equity, reflecting the long-term financial
strain the airline has faced.
Renewed interest from buyers
A previous privatization attempt collapsed in 2024 after attracting only a single undervalued offer. However, the process has regained momentum, with five local business groups now expressing interest. These include Airblue, Lucky Cement, investment firm Arif Habib, and the military-backed Fauji Fertilizer. Final bids are expected by the end of the year.
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reports Rs. 9.3 billion profit despite 17% revenue decline
UK routes reopen after ban lifted
In a further boost to PIA’s prospects, Britain
lifted a five-year ban on Pakistani airlines in July, allowing PIA to reapply
for access to profitable UK routes. The ban, imposed after a 2020 fatal crash
and a pilot licensing scandal, had cost the airline an estimated 40 billion
rupees annually in lost revenue. Key destinations affected included London,
Manchester, and Birmingham — historically among PIA’s most lucrative markets.
This development follows a similar move by the European Union late last year, signaling renewed international confidence in Pakistani aviation oversight.
Source: Zawya