PIA's Profit Signal: A Historic Turnaround Before Privatization

Pakistan International Airlines (PIA) has achieved a remarkable financial milestone by reporting a pre-tax profit for the first half of 2025. This marks its first such achievement in about 20 years, as confirmed by a company source, aligning with plans to privatize the national carrier later this year.

The airline, part of PIA Holding Company, posted a pre-tax profit of 11.5 billion Pakistani rupees ($40.64 million) for the six months ending in June. This contrasts with the same period in 2024, when it faced losses before taxes, only recording a rare annual profit due to deferred tax adjustments. The current half-year's net profit stands at 6.8 billion rupees. These financial improvements come as Pakistan accelerates efforts to privatize PIA, a critical requirement under the nation's $7 billion IMF bailout.

Key to this turnaround has been the significant reduction in finance costs following Islamabad's assumption of about 80% of PIA's legacy debt last year; however, high fuel and service costs still pose challenges. Interest in the airline's sale has been rekindled, with final bids expected later this year, following Britain lifting a ban on Pakistani airlines. This, coupled with the EU's easing of restrictions, allows PIA to reclaim profitable UK routes, previously estimated to have caused an annual revenue loss of 40 billion rupees.

(With inputs from agencies.)