PIA Swings to Profit for First Time Since 2004

Pakistan International Airlines (PIA) reported a pre-tax profit for the first half of 2025, marking its first such gain in nearly 20 years as the government pushes ahead with plans to privatize the national flag carrier, reported Reuters. The airline, now operating under PIA Holding Company, recorded a pre-tax profit of Rs. 11.5 billion ($40.6 million) in the six months ending June, reversing losses from the same period a year earlier. Net profit stood at Rs. 6.8 billion. A company source told Reuters it was PIA’s first pre-tax profit since 2004, noting that financial records prior to 2014 are no longer publicly available. The turnaround was driven largely by a sharp fall in finance costs after the government assumed roughly 80% of PIA’s long-standing debt last year. However, the airline’s equity remains negative, reflecting ongoing pressure from high fuel and service costs. The profit comes at a critical time, with Islamabad preparing to sell the carrier later this year under a $7 billion International Monetary Fund program that calls for divestment of loss-making state-owned firms. Officials say the sale would be Pakistan’s first major privatisation in nearly two decades. Last year’s attempt to sell PIA collapsed after a single low offer, but the government has since attracted interest from five domestic groups, including Airblue, Lucky Cement, investment firm Arif Habib and Fauji Fertiliser. Final bids are expected in the coming months. The airline also stands to benefit from new market access. Britain lifted in July a five-year ban on Pakistani carriers imposed after a 2020 crash and a pilot licensing scandal. The decision allows PIA to reapply for lucrative routes to London, Manchester and Birmingham. The European Union had eased restrictions late last year. PIA had previously estimated annual revenue losses of around Rs. 40 billion from the suspension of its UK flights, which were among its most profitable international operations.