New Delhi, April 8 (SocialNews.XYZ) Pakistan International Airlines (PIA) has scrapped most passenger discounts and cut flight frequencies as rise in jet fuel prices squeezed the air carrier’s finances, a new report has said.
Pakistan-based Dawn cited a PIA spokesperson as saying that concessions are currently limited to children and infants, and all other fare discounts withdrawn.
The move followed a high-level review of rising fuel costs and potential losses after Jet fuel (JP‑1) prices jumped significantly over four times in recent weeks.
The International Air Transport Association’s (IATA) latest fuel monitor showed the global average jet fuel price touching $195.19 a barrel last week, according to multiple reports.
PIA has also cut frequencies and suspended several international routes to counter global supply disruptions linked to the US‑Israel war on Iran.
PIA informed that flights to the UAE will be capped at 16 per week, and services to other Gulf countries, except Saudi Arabia will be suspended until the end of April. Further, flight operations to Beijing and Kuala Lumpur will also be halted from April 11 and April 14, respectively.
“The entire burden of higher fuel prices cannot be passed on to passengers,” the spokesperson said, adding that administrative measures were necessary to limit financial losses.
Pakistan recently raised petrol prices to Rs 458.40 per litre, with a petroleum levy of Rs 161 per litre, and a recent report said the move risks "a structural shock on an already fragile economy." The country later announced some relief on petrol prices.
The hike necessary under the constraints of the IMF programme will pass through supply chains, inflating input costs, compressing margins, and ultimately dampening output, it said.
While the hike aims to mobilise revenue after the administration missed tax targets, it will ultimately end up being a direct hit on viability of small and medium enterprises and transport-dependent sectors, the report noted.
—IANS
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Source: IANS
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