Pakistan International Airlines (PIA) has announced a major financial milestone, reporting a net profit for the first time in 21 years, according to the airline’s board of directors.

The results for FY2024, approved on Tuesday, show that PIA achieved an operational profit of Rs 3.9 billion and a net profit of Rs 2.26 billion.

The airline’s operating margin exceeded 12%, placing it on par with some of the world’s top-performing airlines. This marks a stark contrast to its past performance, as PIA last reported a profit in 2003.

The turnaround comes after a series of comprehensive reforms and restructuring efforts aimed at stabilizing the airline’s finances.

These reforms included significant reductions in manpower and operational expenditures. The airline also focused on ensuring profitability on selected routes while shutting down loss-making ones.

Additionally, PIA’s balance sheet was restructured, paving the way for this financial improvement.

Defence Minister Khawaja Asif, who also oversees the aviation portfolio, took to social media to celebrate the achievement, noting that the airline’s privatisation process would benefit from this positive development.

The government has long sought to sell PIA, but previous attempts have faltered, with an initial bid last year failing to meet the minimum sale price of $306 million.

However, with the airline’s financial health now improving, there is renewed interest from potential buyers.

The government has also removed substantial debt from the airline’s books to make the sale more attractive.

Bloomberg reported that this profit marks a significant recovery for PIA, which has faced years of financial instability, including aircraft impoundments, cancelled flights, and near-default situations.

The restructuring efforts appear to be paying off, as PIA is now in a stronger position ahead of a new round of privatisation bids expected later this month.

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