After 21 long years of remaining locked in a financial nosedive, Pakistan International Airlines (PIA) has successfully posted its first profit. According to credible reports, PIA has logged an operational profit of Rs3.9 billion, with net profit remaining at a healthy Rs2.26 billion.

 

The national carrier’s board of directors approved financial results for 2024, which showed the airline’s improving financial health. A spokesperson from PIA claimed that the airline enjoyed an operating margin of over 12 percent.

 

According to the spokesperson, the national carrier’s financial performance is now in line with that of some of the best airlines in the world. PIA has been able to achieve this feat after making major changes to its business operations and structure.

 

These changes allowed PIA to lift the suspension that had been placed on its flights to major destinations, such as Europe and the United States. This moratorium on PIA’s services came about as a direct consequence of a post-crash speech by then-Minister Ghulam Sarwar, who had claimed without any evidence that 40 percent of PIA’s pilots were flying with fraudulent licenses. Sarwar’s speech detrimentally impacted the airline's credibility, and the airline lost its goodwill with customers, which it had earned over the years. 

 

With PIA now regaining its reputation and working tirelessly to adhere to security regulations, it has regained the right to fly lucrative routes to Europe. Moreover, the airline continues to lease out its slots to airports to which it is barred from flying, such as London Heathrow airport. 

 

In addition to boosting revenues, the airline has focused on cutting costs, as reports indicate that annual expenditures fell considerably during 2024. PIA was able to slash its manpower while suspending flight operations to non-profitable routes.  

 

Lawmakers have taken to social media to celebrate improvement in PIA’s financial health. Defence Minister Khawaja Asif posted on X (formerly Twitter) and outlined how the profit would boost the chances of the airline getting privatised.

 

However, many question if it would be a good idea to privatise the national carrier right as it's beginning to take off again. Reputable institutions have highlighted how the airline would previously witness frequent flight cancellations and plane seizures at airports.

 

The airline's poor financial health was responsible for the aforementioned incidents. As per reports, PIA was teetering on the edge of default and would run annual deficits, prompting Islamabad to consider privatising the state-owned enterprise.

 

Previous privatisation attempts ended in failure as the government unsuccessfully attracted a bid that was far below the minimum price of $306 million for part of the airline.