PIA set to report first profit in two decades
Listen to article
Pakistan International Airlines (PIA) is poised to report its first annual profit in more than two decades, marking a significant turnaround for the national carrier as it moves forward with plans to sell the airline, according to documents seen by Bloomberg.
PIA recorded earnings per share of Rs5.01 for the year ending in December, its first profitable year since 2003, based on audited financial statements.
The results are expected to be submitted to the airline's board for approval before being released publicly. PIA did not respond to a request for comment.
The results mark a dramatic recovery for an airline that, in recent years, has faced mounting financial losses, including aircraft being impounded at foreign airports, canceled flights, and close calls with default.
Regular bailouts from the government were the main lifeline for the airline, though these funds have now been exhausted.
Pakistan's efforts to sell the airline last year failed, as the initial bid fell short of the minimum price of about $306 million. However, the government is making another attempt to privatize PIA, with initial bids expected later this month.
To make the sale more attractive, the government has removed about 75% of the airline's debt from its books. The move has led to renewed interest from potential buyers, with companies that previously participated in the bidding process now expressing greater confidence, according to Usman Bajwa, secretary at Pakistan's privatization commission, in February.
Operational gains in recent years have been offset by the significant burden of debt servicing.
However, PIA has been working to achieve operational profitability by implementing reforms, including reducing its workforce by nearly 30%, shutting down unprofitable routes, and improving fleet utilization.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
15 hours ago
- Business Recorder
Air Karachi signs aircraft maintenance agreement with PIA
An agreement has been finalised between the Pakistan International Airlines (PIA) and Air Karachi — an airline established by Karachi's business community — for aircraft maintenance, according to a statement released on Wednesday. Under the agreement, Air Karachi will receive engineering services or MRO (Maintenance, Repair, and Overhaul) services from the PIA. The agreement was signed by PIA CEO Air Vice Marshal Amir Hayat, Air Karachi Chairman Hanif Gohar, and Air Karachi CEO Air Marshal (Retd.) Imran Majid. In November 2024, the business community of Karachi announced the launch of a new airline, Air Karachi, with an initial investment of Rs5 billion. The announcement was made by Hanif Gohar during his visit to the Karachi Press Club, accompanied by S M Tanveer, Chairman of the United Business Group. Air Karachi is yet to launch its flight operations.
Express Tribune
15 hours ago
- Express Tribune
US China trade deal: Chinese stocks surge as Hang Seng Index rises after US-China trade deal announced
Chinese stocks rose on June 11, bolstered by signs of easing trade tensions between the United States and China after a two-day meeting in London. The meeting saw both countries agree on a preliminary framework to de-escalate trade conflicts, which helped restore investor confidence. As reported by Bloomberg, the onshore CSI 300 Index, which tracks the largest companies on the Shanghai and Shenzhen stock exchanges, gained 1%, marking its most significant rise in nearly a month. Meanwhile, a measure of Chinese stocks listed in Hong Kong advanced by 0.9%, reaching its highest point since March. The market rally followed the announcement of an agreement between the US and China, which focused on the implementation of consensus reached earlier in Geneva. Progress made in the trade talks, coupled with positive rhetoric from both sides, has raised hopes that the dispute between the two largest economies in the world could be heading towards resolution. The agreement also addresses China's export restrictions on rare earth minerals and magnets, which have been a point of contention between the two nations. US Commerce Secretary Howard Lutnick confirmed the framework at the conclusion of the London talks, highlighting its potential to put the trade truce back on track. US and Chinese officials agreed on a framework to put their trade truce back on track and resolve China's export restrictions on rare earth minerals and magnets, US Commerce Secretary Howard Lutnick said — Reuters (@Reuters) June 11, 2025 However, market reactions were largely muted, with S&P 500 futures showing little movement, and only modest fluctuations in the offshore yuan. Chris Weston, head of research at Pepperstone, noted that the lack of significant market reaction suggested that the outcome of the talks had already been priced in. The Daily Fix – Big trading levels in full view US-China talks continue to progress well – superficially, at least – with talks set to spill over for a third day - a factor that keeps the bid in risk and the sellers feeling they may be able to execute orders at higher/better… — Chris Weston (@ChrisWeston_PS) June 10, 2025 'The devil will be in the details,' Weston said, emphasising the importance of how rare earths exports to the US are handled and the subsequent access for US-produced chips to China. Despite the limited immediate impact on market movements, the outlook for a resolution in the trade conflict has provided Chinese and Hong Kong stocks with a positive boost ahead of further details from the ongoing trade talks.
Business Recorder
a day ago
- Business Recorder
Privatisation: Rs86.5bn target set
ISLAMABAD: Federal government has budgeted Rs 86.550 billion collection from privatization proceeds in the next fiscal year which is 981.8 percent higher than the revised estimates of current fiscal year's Rs 8 billion. The government budgeted Rs 30 billion privatization proceeds originally for the ongoing fiscal year 2024-25. The International Monetary Fund's (IMF's) first staff-level report uploaded on its website on May 17, 2025 projected zero revenue from privatisation from 2019-20 till 2030 while it underscored the government's commitment to prioritising privatisation of commercial profitable state-owned entities (SOEs) supported by completion of the SoE privatisation classification. Govt aims to privatise up to 50 SOEs in next 3-4 years: minister The IMF is urging federal government to expedite the divestment of government-run institutions and reduce state influence in the commercial sector. Pakistani authorities informed the IMF that the rightsizing of public sector entities will be completed by December 2025. The government has extended the deadline for Expressions of Interest (EoI) for the privatization of Pakistan International Airlines (PIA) to June 19, 2025. This is an extension from the original deadline of June 3, 2025. The government is looking to sell a majority stake (51% to 100%) in PIA through privatization. The previous attempt to privatize PIA in 2024 failed to attract multiple bidders. A financial adviser has also been appointed for the privatization of three major electricity distribution companies: Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), and Gujranwala Electric Power Company (GEPCO). The target is to complete the privatization of these companies by December 2025. In the second phase, the government plans to privatize the Hyderabad, Sukkur, and Peshawar electricity distribution companies. Meanwhile, the privatization of the Nandipur Power Plant has been scheduled for January 2026. Efforts are also under way to privatize other government-owned commercial assets, including the Roosevelt Hotel in New York, the First Women Bank, and the House Building Finance Corporation (HBFC). The Privatization Commission confirmed that the transaction structure for these entities is being finalized. According to officials, the privatization of profitable public enterprises remains a top priority in line with the government's broader goal of reducing state involvement and attracting private investment. Copyright Business Recorder, 2025
