Pakistan International Airlines (PIA) is facing growing operational uncertainty as a sharp rise in jet fuel prices threatens the carrier’s financial stability.
Arif Habib, chairman of the consortium holding a 75% stake in PIA, warned that the airline may struggle to sustain operations if current pricing levels persist. Since early March, domestic jet fuel prices have surged by nearly 150%, rising from Rs190 to Rs472 per litre—significantly outpacing global market trends.
Habib emphasized that while flights are still operating, the current cost environment is unsustainable. “No business can remain healthy while operating at a consistent loss,” he stated, noting that the increase follows geopolitical tensions in the Middle East that disrupted global oil supply.
The consortium, which is preparing to assume full operational control, is expected to appeal directly to Prime Minister Shehbaz Sharif for intervention. According to Habib, domestic fuel pricing has become “disproportionately high compared to global markets,” placing an excessive burden on both the airline and its passengers.
Government measures aimed at shielding consumers from energy price shocks—such as the Rs84 per litre increase introduced on March 21—have had unintended consequences for the aviation sector.
PIA’s challenges are compounded by structural weaknesses, including a reduced fleet of just 18 active aircraft, legacy inefficiencies, and historically high operating costs. The airline’s long-term recovery will depend not only on pricing adjustments but also on targeted policy support and operational restructuring.
