Pakistan International Airlines (PIA) has swung to profit in the first half of 2025, marking its first such turnaround in almost 20 years, as the government accelerates efforts to privatise the national carrier under the $7 billion IMF bailout programme.
According to company figures, PIA recorded a pre-tax profit of Rs11.5 billion ($40.6 million) in the six months ending June 2025. This compares sharply with the same period last year, when the airline reported losses before taxes and only managed a rare annual profit through deferred tax adjustments. The net profit stood at Rs6.8 billion in the current half year.
A senior company source confirmed this was PIA’s first half-year profit since 2004, highlighting the impact of recent financial restructuring.
Debt Relief Boosts Recovery
The return to profitability was largely driven by a sharp reduction in finance costs after the federal government assumed around 80% of PIA’s legacy debt in 2024. Despite the improvement, the airline’s equity remains negative, underscoring the fragile nature of the recovery. High fuel prices and service expenses continue to weigh on operations.
Privatisation on the Fast Track
The profit announcement comes as Islamabad pushes ahead with the long-delayed privatisation of PIA, which would be the country’s first major divestment in nearly two decades. The government has already attracted interest from at least five domestic groups, including Airblue, Lucky Cement, investment house Arif Habib, and Fauji Fertiliser. Final bids are expected later this year.
A previous attempt in 2024 collapsed after the government received only a single undervalued bid, but officials are confident that renewed investor interest will make this round more successful.
Return to Lucrative UK Routes
Adding to the airline’s momentum, Britain lifted its five-year ban on Pakistani carriers in July 2025, imposed after the 2020 Karachi crash and subsequent pilot licensing scandal. This allows PIA to reapply for flights to London, Manchester, and Birmingham—routes once considered among its most profitable.
The airline had earlier estimated an annual revenue loss of nearly Rs40 billion due to the UK ban. The European Union had already eased restrictions late last year, opening doors for PIA to regain access to European markets.
Outlook
While the first-half profit offers much-needed relief, analysts caution that PIA’s turnaround remains fragile. The upcoming privatisation process and the restoration of international routes will play a decisive role in shaping the future of the flag carrier.
