ISLAMABAD: Pakistan International Airlines (PIA) has reported a pre-tax profit of Rs11.5 billion ($40.64 million) for the first half of 2025, marking its first such profit in nearly two decades. This comes as the airline prepares for a planned sale later this year, a key element of Pakistan’s $7 billion IMF bailout.
In comparison, PIA had posted a loss before taxes in the same period last year, only managing a rare annual profit through deferred tax adjustments. The net profit for the current half year stood at Rs6.8 billion.
The profit marks the first time since 2004 that the state-run airline has posted a pre-tax profit for the first half of the year. The disclosure comes as the government moves forward with plans to privatize PIA, with interest from several domestic business groups, including Airblue, Fauji Fertilizer, and Lucky Cement.
Despite high fuel and service costs, a significant reduction in finance costs—following the government assuming about 80% of PIA’s legacy debt last year—has played a crucial role in the airline’s turnaround. However, PIA’s equity remains negative, reflecting the challenges in its recovery.
The privatization effort, which marks Pakistan’s first major privatization in two decades, had faced setbacks previously, with a failed attempt last year due to a single lowball offer. But the government remains optimistic with final bids expected later this year.
PIA’s recent profit comes as the airline reopens access to lucrative UK routes following the lifting of a five-year ban on Pakistani airlines in July, after a fatal crash and a pilot licensing scandal. This move, along with the European Union’s similar action last year, is expected to boost revenue, particularly from key routes to London, Manchester, and Birmingham, where PIA had previously faced a loss of around Rs40 billion annually.
