PIA’s Financial Report for 2024 Reveals High Operational Costs Despite Profit

Islamabad:Pakistan International Airlines (PIA), often viewed as a financial burden on the national treasury in recent years, has reported significant figures for its financial performance in 2024. Despite accumulating a debt of 850 billion rupees over the past few years, PIA managed to generate an operational profit of 9.35 billion rupees and a net profit of 26.20 billion rupees.

According to records from the Ministry of Defence, PIA’s total expenses for the year 2024 amounted to 198.80 billion rupees. The airline’s operational costs are dominated by fuel expenses, which alone accounted for 75.58 billion rupees. Additionally, the airline spent 17.48 billion rupees on aircraft maintenance, 29.42 billion rupees on landing and handling charges, and 17.24 billion rupees on employee salaries.

Other significant expenses included 7.90 billion rupees for leasing rental costs, 12.10 billion rupees for depreciation, and 5.40 billion rupees for aircraft insurance. The airline also spent 4.20 billion rupees on passenger services and 4.30 billion rupees on sales-related costs. Furthermore, PIA incurred 28.17 billion rupees in other operational expenses.

Despite these substantial costs, PIA’s total liabilities (both domestic and international) amounted to 187.28 billion rupees, reflecting a challenging financial landscape for the national carrier.

While PIA has reported profits for 2024, the ongoing high operational costs raise concerns about the airline’s ability to sustain long-term profitability and address its growing financial obligations. Experts suggest that strategic cost-cutting measures and operational efficiency improvements are needed to stabilize the airline’s finances in the future.

This report sheds light on the complex financial dynamics of PIA, highlighting the need for effective reforms to ensure its long-term viability and reduce its dependence on government support.