Pakistan's national airline posts first annual profit in 21 years

Pakistan's national carrier has posted an annual profit for the first time in more than two decades ahead of a second attempt by the government to sell the airline, the country's defence minister said.

The disclosure was made at a Pakistan International Airlines (PIA) board meeting, the minister said late on Tuesday.

"PIACL Board today has approved its accounts FY 2024, and after 21 years, it has achieved an operating profit of PKR 9.3 Billion ($33.14 million) & Net Profit of PKR 26.2 Billion (after deferred tax adjustment)," Defence and Aviation Minister Khawaja Muhammad Asif said in a post on X, which was confirmed by the airline in a statement.

Prime Minister Shahbaz Sharif on Wednesday termed it a "major turnaround after decades of losses" and said in a post on X: "The skies ahead looks brighter, God willing."

Islamabad's attempt to privatise PIA last year fell flat when it received only a single offer, well below the asking price of more than $300 million.

Pakistan had offloaded nearly 80% of the airline's legacy debt and shifted it to government books ahead of the privatisation attempt.

The rest of the debt was also cleaned out of the airline's accounts after the failed sale attempt to make it more attractive to potential buyers, according to the country's privatisation ministry.

The airline has for years survived on government bailouts as its operational earnings were eaten up by debt servicing costs.

Officials say offloading the debt burden and recent reforms like shedding staff, exiting unprofitable routes and other cost-cutting measures led to the profitable year.

Ahead of the attempt to sell the airline last year, PIA had faced threats of being shut down, with planes impounded at international airports over its failure to pay bills and flights cancelled due to a shortage of funds to pay for fuel or spare parts.

Reuters