PIA Makes a Comeback: First Profit in 21 Years
After two decades of financial struggle, Pakistan International Airlines is turning heads with a projected net profit in 2024, thanks to bold reforms, strategic restructuring, and renewed operational discipline.
Photo Source: Brandsynario
Pakistan International Airlines (PIA) is set to record a historic net profit in 2024, marking the end of a 21-year financial drought. This dramatic turnaround comes after a series of restructuring initiatives, aggressive cost-cutting, and a renewed focus on operational excellence.
After posting a staggering Rs104.5 billion loss in 2023, the airline undertook strategic reforms, including the revival of European routes, a 30% reduction in workforce, and significant improvements in fleet utilisation and on-time performance. The results? A 12% operating margin and a steep decline in financial costs — down from Rs79.42 billion to just Rs10.06 billion.
A major contributor to the rebound was the government-backed split of PIA into two entities: PIACL, which now handles core operations, and PIAHCL, which manages non-operational liabilities and assets. This move shifted over Rs660 billion in debt, creating a leaner and more agile airline.
CEO Air Vice Marshal Amir Hayat described 2024 as a pivotal year. With an emphasis on operational excellence, customer experience, and financial stability, he believes the airline is now on a trajectory toward long-term profitability.
Still, challenges remain. Experts warn that re-entering international markets comes with high risks, especially amid fierce global competition. For sustained success, analysts suggest forming strategic alliances and investing in fleet modernization — even though new aircraft deliveries may not materialize before 2030.
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