Pakistan International Airlines (PIA) reported a pre-tax profit for the first half of 2025, its first such gain in almost two decades. Operating under the new PIA Holding Company, the carrier posted Rs11.5 billion pre-tax profit for January–June and Rs6.8 billion net profit.
The turnaround arrives as Islamabad advances a plan to privatise the airline this year.
First half profit breaks a two-decade drought
A company source said this is the first pre-tax profit since 2004. Public financials before 2014 are limited, yet the swing from losses a year earlier is clear.
Management credited tighter cost control and a sharp drop in finance charges.
Equity remains negative, reflecting heavy fuel and service costs, but the result signals that reforms are gaining traction and the core network can support a sustainable business with the right capital structure.
Debt relief and lower finance costs drove recovery
The government assumed about 80% of legacy debt last year, cutting interest expenses and freeing cash for operations.
That relief, paired with disciplined scheduling and yield focus, improved margins through the first half. Furthermore, market access is also improving.
The UK lifted a five-year ban in July, allowing PIA to reapply for London, Manchester, and Birmingham. Similarly, EU eased curbs late last year.
Restoring these routes can rebuild premium revenue that PIA once estimated at Rs40 billion annually.
Privatisation process gathers bidders and a firmer timeline
Privatisation is a key plank of Pakistan’s $7 billion IMF program. After a failed attempt last year, officials now count interest from five domestic groups, including Airblue, Lucky Cement, Arif Habib Group, and Fauji Fertiliser.
Final bids are expected in the coming months.
A clean balance sheet, returning long-haul markets, and a credible sale process give PIA a real chance to lock in today’s momentum and deliver reliable, modern service for travelers at home and abroad.
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