Islamabad — The new owners of Pakistan International Airlines (PIA) have acknowledged that the national carrier is likely to face financial losses in its initial years of transition, despite an upfront investment of $400 million aimed at stabilizing and restructuring the airline.
Speaking to the media on Tuesday, representatives of the new ownership said the early losses were anticipated due to long-standing operational inefficiencies, an aging fleet, heavy debt burdens, and the need for major organizational reforms. They emphasized that the investment would primarily be used to modernize aircraft, improve safety and service standards, and overhaul management systems.
“Turning around an airline with decades of structural problems cannot happen overnight,” an official said. “The first few years will focus on rebuilding credibility, improving operations, and laying the foundation for long-term profitability.”
The $400 million injection is expected to cover immediate liquidity needs, settle critical liabilities, and support fleet renewal. The owners also plan to renegotiate aircraft leases, streamline routes, and reduce operational costs while expanding profitable international destinations.
Government officials welcomed the candid assessment, noting that realistic expectations are crucial for sustainable reform. Analysts say early losses are common in airline turnarounds, especially when significant reforms and capital expenditures are involved.
The new owners reiterated their long-term commitment to PIA, expressing confidence that with disciplined management and continued investment, the airline could return to profitability within the next five to seven years
