PIA grounds Gulf, Asia routes and ends passenger discounts after 150pc jet fuel spike

Mounting aviation fuel costs have forced Pakistan International Airlines (PIA) to scale back operations and withdraw fare incentives, as management moves to contain losses following a sharp escalation in jet fuel prices.

The airline has suspended flights to several Gulf destinations and key Asian cities, while maintaining limited operations to the United Arab Emirates and Saudi Arabia. Services to Beijing will be halted from April 11, followed by the suspension of flights to Kuala Lumpur from April 14, according to the airline’s spokesperson.

In addition, PIA will reduce its UAE operations to 16 flights per week, a move aimed at aligning capacity with rising operating costs and weakening margins.

The operational cuts come after the fourth consecutive increase in jet fuel (JP-1) prices, which have surged significantly in recent weeks amid global supply disruptions tied to escalating geopolitical tensions in the Middle East. Industry officials say the sustained rise in fuel costs has sharply eroded the financial viability of several routes.

As part of its cost-control strategy, the airline has also scrapped all passenger fare discounts, retaining concessions only for children and infants. Management described the decision as a necessary administrative measure, noting that the full burden of fuel price increases could not be transferred to consumers without damaging demand.

The decisions were finalized during a high-level management review focused on mitigating financial losses and preserving operational stability in the face of volatile fuel markets.

Last week, Arif Habib, chairman of the PIA consortium, warned that a 150 percent surge in jet fuel prices could threaten the sustainability of the airline’s operations and called on the government to reconsider recent increases in aviation fuel rates.

Airline officials expressed hope that fuel prices would stabilize in the coming months, indicating that suspended routes and reduced flight frequencies could be gradually restored once operating conditions improve.