Despite Half Fleet Grounded, PIA Earns Over Rs 11.5 Billion Profit as Privatization Expected by Late December

Pakistan International Airlines (PIA) has posted a strong financial performance despite operating with nearly half of its fleet grounded. The national flag carrier has earned more than Rs 11.5 billion in pre-tax profit during the first six months of the ongoing fiscal year, according to official sources.

The airline is currently operating with only 14 to 16 aircraft, while 16 of its total 32 planes remain non-operational due to engine and spare-parts issues. Despite this reduced fleet, PIA has continued international operations to key destinations including Canada, the UK, France, Saudi Arabia, the UAE, and other countries.

Last year, the airline recorded Rs 26.2 billion in profit. Sources claim that if PIA’s full fleet were operational, the airline could earn an additional Rs 2 to 3 billion this year. Some officials argue that timely restoration of the grounded aircraft could eliminate the need for privatization altogether.

However, the privatization process has once again been delayed. Instead of early December, the bid is now expected in the last week of the month. Companies participating in the privatization process include Fauji Fertilizer, Habib Rafiq, Yunus Brothers, and Airblue. The upcoming bidding round will determine the future owner of PIA.

According to PIA sources, whichever entity purchases the airline will be required to inject an estimated Rs 300 to Rs 400 billion in fresh investment—a significant challenge for any buyer.

Sources further revealed that PIA’s domestic and international real estate assets, valued in billions, are not part of the privatization package. These properties have already been transferred to the PIA Holding Company. Only four major operational offices—located in Islamabad, Karachi, Peshawar, and Rawalpindi—are included in the privatization deal.