PIA Makes a Huge Comeback: First Profit in Over 20 Years
For a very long time—over two decades—Pakistan International Airlines (PIA) was in serious trouble. Every year, it was losing money. Many people thought the airline might never recover. But now, something surprising has happened:
In the financial year 2024, PIA made a profit of PKR 26.2 billion (around 94 million US dollars). This is the first time in more than 20 years that the airline has earned more than it spent.
This news shocked many people. It showed that PIA might be turning into a successful company again.
How Did PIA Go From Losing to Winning?
Let’s break down the four biggest reasons why PIA suddenly made a profit.
1. Debt Restructuring — Fixing the Money Problems
PIA used to have a huge amount of debt—basically money it had borrowed and needed to pay back. The airline was paying millions of rupees just in interest every year. That means even before it could spend on airplanes or salaries, it was losing money to banks and lenders.
To fix this, the Government of Pakistan stepped in and helped PIA with something called "debt restructuring."
What does that mean?
Some of PIA’s loans were delayed or extended, so the airline didn’t have to pay them back right away.
The interest on some loans was reduced.
In some cases, the government may have taken over some of the debt, meaning PIA didn’t have to pay it at all.
By doing this, the airline didn’t have to spend so much money on debt payments and could focus on running its business better.
2. Operational Reforms — Running Things More Smartly
Just reducing debt wasn’t enough. PIA also had to improve how it worked every day.
This is called operational reform. Here are some examples of what they did:
Flight routes were optimized: That means PIA stopped flying on routes where they were losing money and added more flights to routes where they were making profits.
Old planes were either repaired or replaced to make sure flights didn’t get delayed or canceled.
Fuel usage was made more efficient, which saved millions.
Better booking systems helped attract more passengers.
Staff training was improved, so customer service became better, leading to happier passengers who want to fly with PIA again.
All of these changes helped save money and make more money at the same time.
3. The Push for Privatization — Preparing for a New Owner
For many years, the Government of Pakistan has been trying to privatize PIA, which means they want to sell part (or all) of the airline to private companies. But there was a problem: no investor wants to buy a company that keeps losing money.
So, the government had to clean it up first — kind of like fixing a broken house before trying to sell it. Making PIA profitable again is a big step in that direction.
Now, with this profit in 2024, investors around the world might start showing interest in buying a share in PIA. That would bring more money, new ideas, and more advanced systems into the airline.
4. Focusing on the Business, Not Just Survival
In the past, PIA was just trying to survive. Every year, it asked the government for more money just to stay open. But now, the airline is starting to act more like a real business — trying to earn money on its own.
That means:
Competing with other airlines by offering better services and prices.
Using data to understand which routes and services are profitable.
Cutting down on corruption and laziness inside the company.
This new attitude of running PIA like a serious company is one of the biggest reasons for its recent success.
Why Does This Matter for Pakistan?
This profit is not just good news for PIA — it's important for the whole country. Here's why:
National Pride: PIA is the national flag carrier. That means it represents Pakistan in the skies. A successful airline boosts the image of the country.
More Tourism: If PIA works better, more tourists might visit Pakistan, helping hotels, local businesses, and tour operators.
More Jobs: A growing, healthier airline can hire more people — from pilots to cabin crew to mechanics and ground staff.
Economic Strength: Investors from other countries might now be more willing to invest in Pakistan if they see that even struggling companies like PIA can turn around.
Improved International Travel: PIA can restart more international routes (especially in Europe and the UK), which makes it easier for people to travel and trade.
What’s Next for PIA?
While this is a huge step, PIA’s journey isn’t over. Here’s what needs to happen next:
It has to continue improving its operations and customer service.
It needs to earn the trust of international aviation authorities again. (For example, there was a ban from flying to Europe after a pilot license scandal.)
It has to attract the right buyer when the government privatizes it.
It must keep the momentum and not fall back into old bad habits.
PIA’s profit in 2024 is more than just a number on paper. It shows that even a company that everyone had almost given up on can be saved — if the right steps are taken with honesty, planning, and commitment.
