PIA Posts Rs. 9.3B Profit Despite 16% Revenue Drop

Pakistan International Airlines (PIA) witnessed a 16.8% drop in operating revenue for the calendar year 2024, with earnings totaling Rs. 204.16 billion, as outlined in the Economic Survey 2024-25. Despite this decline, the national flag carrier managed to post an operating profit of Rs. 9.3 billion, showcasing a noteworthy recovery amid a challenging operational landscape.

This marks PIA’s second consecutive year of operational profitability, a significant milestone considering its long-standing financial struggles.

The positive margin was largely driven by a sharp 20.8% reduction in operating expenses, which fell to Rs. 194.81 billion from Rs. 235.32 billion the previous year. The airline’s cost-cutting measures, including workforce optimization and operational streamlining, proved effective in offsetting revenue losses.

PIA reduced its workforce from 7,800 to 6,900 employees and separated core aviation operations from non-core businesses, further improving operational efficiency.

Declining Passenger Metrics

Despite the financial rebound, PIA faced a decline in passenger and flight metrics:

• Passenger traffic dropped from 4.5 million in 2023 to 3.9 million in 2024.
• Revenue hours flown declined to 82,043, down from 90,067.
• Flown kilometers fell to 51.98 million, compared to 57.12 million in the previous year.
• The passenger load factor slightly decreased to 81.8%, while the revenue load factor improved to 64.4%, continuing its upward trend since 2020.

PIA expanded its fleet size to 33 aircraft and nearly doubled its total route length to 593,063 kilometers, reflecting ambitions to grow international connectivity.

A major milestone was the clearance from the European Union Aviation Safety Agency (EASA), allowing PIA to resume flights to Europe. The airline is preparing to relaunch services to Paris in January 2025, alongside new interline agreements granting access to 21 destinations across Europe and the UK.

Strategic Digital and Global Partnerships

In 2024, PIA launched redesigned websites and digital booking systems, integrating with major travel platforms such as Wego and Google Flights. The airline also entered strategic partnerships with global carriers like Air France-KLM and Alaska Air, strengthening its international presence.

The financial rebound has renewed talks of privatization, with officials pointing to the profit as evidence of successful restructuring. However, the drop in operational scale and passenger numbers signals that further efforts will be needed to ensure long-term sustainability.