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For the first time in twenty years, Pakistan International Airlines (PIA) has managed to close a year with a profit. This positive news is important for a future step the airline plans to take.
For twenty years, Pakistan’s national airline, PIA, incurred losses, forcing the government to step in with taxpayer money. The airline operated many unprofitable routes and, relatively speaking, had an enormous number of employees. As a result, the airline was burdened with huge debts. For years, PIA spent more on repaying debts than it earned in revenue.
Last year, the government attempted to sell the national airline, but the process turned into a dramatic spectacle. Only one bid was received, which was many times lower than the asking price of over three hundred million U.S. dollars. The Pakistani government withdrew the offer. The airline’s massive debts were primarily responsible for the disastrous sale process.
Now, the airline has managed to close the financial year 2024 in the black. The Minister of Defense announced this after a meeting of the airline’s board of directors. He stated that PIA achieved an operational profit of 9.3 billion Pakistani rupees (33.14 million dollars), which was confirmed by Pakistan International Airlines.
Next step
With the positive financial results, the government is moving on to the next step. Pakistan plans to put the national airline up for sale again and hopes to attract more bids than it did a year ago. The elimination of the debt burden and the recent reforms will likely contribute significantly to this.
Before the failed sale last year, PIA was in serious trouble and even faced the threat of closure. Its aircraft were grounded at airports in other countries because it couldn’t pay its bills. Additionally, Pakistan International Airlines canceled several flights due to insufficient funds for fuel or spare parts. The airline had long been unwelcome in the EU due to safety concerns. With its return to Paris, PIA caused quite a stir.