PIA Holding cuts annual loss to PKR 15B, still weighed by debt and liabilities

PIA Holding Company Limited (PIAHCL) reported a consolidated loss after tax of PKR 15 billion for calendar year 2024 (CY24), down significantly from PKR 87 billion in losses the previous year, the company disclosed during a corporate briefing held Tuesday.

Despite the improvement, the national flag carrier’s holding company remains deeply in the red, weighed down by a heavy financial burden that includes commercial debt, legacy employee liabilities, and decades of mismanagement.

The loss per share (LPS) stood at PKR 2.93 in CY24, compared to PKR 16.67 in CY23. Company officials attributed the narrowing losses to a drop in jet fuel prices and a notable reduction in finance costs, which declined to PKR 60 billion from PKR 91 billion last year. Of this, PKR 46 billion was directly attributed to PIAHCL, with PKR 32 billion owed to commercial banks and PKR 3.2 billion in employee pension and medical liabilities.

Privatization picks up pace

The latest financial disclosures come amid growing momentum behind the privatization of Pakistan International Airlines (PIA) — a move long delayed but now approaching critical stages. As of August 2025, four bidders are in the due diligence phase, after five groups initially expressed interest in June. Final offers are expected before year-end, with the government aiming to close the transaction within 2025.

Adding to investor interest is the lifting of the UK’s five-year ban on Pakistani airlines earlier this year, enabling PIA to resume flights to Manchester and other key European destinations.

Analysts suggest the resumption of high-yield international routes will enhance the carrier’s valuation, though significant liabilities—particularly long-standing debts and employee-related costs—continue to present serious challenges for potential buyers.

Roosevelt Hotel: a lingering symbol

Among the assets under PIAHCL’s umbrella is the Roosevelt Hotel in New York City, a historic property that has long been at the center of debate over state-owned asset management. Once considered a potential revenue generator or privatization candidate, the Roosevelt has instead become a symbol of stalled reform and financial drain, with questions over its future still unresolved.

Though not discussed during the briefing, the Roosevelt remains on the books as a non-core asset, with prior attempts to lease, repurpose, or sell the property stalled by legal hurdles and shifting policy directions.

While CY24 results show a relative improvement in financial performance, PIAHCL’s road to recovery remains uncertain.

Management continues to lean on the privatization of PIA as a long-term solution to financial viability, while analysts warn that deep-rooted structural inefficiencies and a history of political interference must also be addressed.