PIA reports first annual profit since 2004

ISLAMABAD: Pakistan International Airlines (PIA) reported a pre-tax profit for the first half of 2025, its first such gain in nearly 20 years as the government pushes ahead with plans to privatize the national flag carrier.

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 ended June, reversing losses from the same period a year earlier. Net profit stood at Rs. 6.8 billion.

A company source told Reuters that this was PIA’s first pre-tax profit since 2004, noting that financial records prior to 2014 are no longer publicly available.

The turnaround came as the government took over about 80 percent of PIA’s long-standing debt last year. However, the airline’s equity remains negative, reflecting ongoing pressure from higher fuel and service costs.

The profit comes at a critical time, as Islamabad prepares to sell the carrier later this year under a $7 billion International Monetary Fund program that calls for the divestment of loss-making state-owned firms. Officials say the sale would be Pakistan’s first major privatization in nearly two decades.

An attempt to sell PIA last year failed after a single low offer, but the government has since attracted interest from five domestic groups, including Air Blue, Lucky Cement, investment firm Arif Habib and Fauji Fertilizers. Final bids are expected in the coming months.

The airline will also benefit from new market access. Britain lifted a five-year ban on Pakistani carriers in July 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 earlier estimated an annual revenue loss of around Rs. 40 billion from the suspension of its UK flights, which were among its most profitable international operations.