Soaring fuel costs push PIA to trim operations

LAHORE:

Pakistan International Airlines (PIA) has scaled back its international operations, suspended key routes, and scrapped passenger discounts as surging jet fuel prices force the national carrier into sweeping cost-cutting measures, officials said on Monday.

The move follows a fresh warning by the Pakistan Meteorological Department's broader context of regional disruption and comes after jet fuel (JP-1) prices spiked sharply in recent weeks amid supply chain uncertainty linked to the US-Israel war on Iran.

A PIA spokesperson said the airline, facing mounting financial pressure after a fourth consecutive increase in fuel prices, had finalised a strategy at a high-level meeting to contain losses without fully passing the burden onto passengers.

"The PIA has made a principled decision to end all discounts, with concessions remaining only for children and infants," the spokesperson said, adding that difficult administrative decisions had become unavoidable under the circumstances.

As part of the restructuring, PIA will suspend its Beijing and Kuala Lumpur operations from April 11 and April 14, respectively, while flights to Gulf countries, except Saudi Arabia and the United Arab Emirates, will remain suspended until the end of April.

Operations to the UAE will also be curtailed to 16 weekly flights. Officials said these steps were taken to rationalise operations and reduce exposure to rising fuel costs, with the hope that routes would be restored once global prices stabilise.

Alongside route cuts, the airline has introduced a range of austerity measures under a newly issued internal circular.

These include the imposition of war-risk charges on cargo shipments, the use of a single engine while taxiing aircraft to the runway to conserve fuel, and strict controls on onboard catering, with meals loaded strictly in line with passenger numbers and no excess food permitted.

The circular also directs that onboard electric generators be used only in emergency situations to minimise fuel consumption.

Sources said the decisions were taken in the backdrop of both the Middle East conflict and the government's broader austerity drive, as PIA grapples with a deepening financial crunch.

The airline has also begun recalibrating operational efficiency to reduce unnecessary fuel load and improve cost management.

Officials maintained that while the situation remains challenging, the airline is attempting to strike a balance between operational sustainability and passenger relief.

The spokesperson expressed hope that global fuel prices would stabilise in the near future, allowing suspended routes to resume.

Flight operation

The ongoing Iran–US conflict has once again thrown flight operations into disarray as at least 40 international flights to and from Pakistan were cancelled across major airports on Monday, disrupting travel and deepening pressure on airlines already grappling with rising fuel costs.

Airport sources said the cancellations affected flights connecting Pakistan with key destinations including the United Arab Emirates, Saudi Arabia, Iran, Iraq and Azerbaijan.

At Lahore's Allama Iqbal International Airport alone, nine flights to and from Dubai, Riyadh, Jeddah, Abu Dhabi, Tehran and Bahrain were cancelled.

Islamabad airport reported seven cancellations on routes including Abu Dhabi, Dubai, Dammam, Fujairah, Al Ain and Muscat.

Karachi bore the brunt of the disruption, with 14 flights to Najaf, Abu Dhabi, Jeddah, Dubai, Bahrain and Sharjah called off, while two flights from Multan and eight from Peshawar, serving destinations such as Dubai, Abu Dhabi, Bahrain and Doha, were also cancelled, according to flight information sources.

The crisis comes as the Iran–US conflict enters its 38th day, with airport officials warning that prolonged instability is steadily constricting flight operations.

The deteriorating situation has also dampened passenger demand, with travellers increasingly postponing plans and opting to fly only when absolutely necessary.

Travel agents said the twin impact of soaring jet fuel prices and higher fares has further reduced passenger numbers, leaving airlines caught between rising operational costs and shrinking demand.