ISLAMABAD: PIA Holding Company Limited (PIAHCL) suffered a consolidated net loss of Rs25.39 billion during 2025 as crushing finance costs overwhelmed its operating gains and exposed the enormous burden that still sits behind Pakistan International Airlines’ restructuring.

The latest financial statements, submitted to the Pakistan Stock Exchange , show that the holding company’s annual loss jumped 76% from the restated Rs14.43 billion loss recorded in 2024. Loss per Class-A share deteriorated to Rs4.85 from Rs2.78, while Class-B loss per share increased to Rs2.43 from Rs1.39. The board announced no cash dividend, bonus shares or rights issue for shareholders.

PIAHCL Financial Results

PIA Holding generated a gross profit of Rs16.39 billion from net revenue of Rs25.71 billion during 2025. More importantly, the company turned a Rs31.76 billion operating loss in 2024 into an operating profit of Rs17.36 billion. That Rs49.12 billion turnaround would normally signal a dramatic recovery. However, the company’s debt bill erased the entire gain.

Finance costs reached an extraordinary Rs53.65 billion, more than three times the annual gross profit. After adding a Rs332.54 million exchange loss, PIA Holding reported a Rs36.62 billion loss from continuing operations.

The group subsequently recognised an Rs18.45 billion gain from discontinued operations, which reduced its loss before levy and tax to Rs18.17 billion. Levies and taxation added another Rs7.22 billion to the burden, pushing the final consolidated loss to Rs25.39 billion.

Also Read: PIA Handover Delay Deepens as Winning Consortium Still Waits for Control

The results reveal an uncomfortable reality: PIA’s restructuring may have improved the airline’s operational appearance, but it did not eliminate the underlying debt. The government transferred much of the national carrier’s legacy liabilities to PIA Holding before privatisation, effectively separating the airline from a large portion of its historical financial burden.

Rs834 Billion Liabilities Overshadow PIA Holding

PIA Holding ended 2025 with total liabilities of Rs834.27 billion against assets of Rs437.66 billion. Its consolidated negative equity widened to Rs576.89 billion from Rs558.91 billion one year earlier.

Long-term financing climbed to Rs412.72 billion, while accrued mark-up reached Rs111.57 billion. Current liabilities stood at Rs346.06 billion, including trade and other payables of Rs191.80 billion.

The company also reported Rs180.28 billion in liabilities connected with assets held for sale.

Cash and bank balances fell 52% to Rs7.83 billion from Rs16.35 billion. The group generated Rs8.46 billion from operating activities, but investment and financing outflows consumed that cash and weakened its year-end liquidity.

Investors must not confuse these results with the airline’s standalone operating performance. PIA Holding carries the debts and other obligations that the government separated from the operating carrier during restructuring. The holding company’s numbers therefore describe the cost of that financial clean-up, not simply aircraft operations.

Shareholders will consider the FY2025 accounts at the annual general meeting in Islamabad on September 28. The numbers leave them with a blunt conclusion: operational improvement means little while finance costs continue swallowing tens of billions of rupees annually.