Chairman of the Pakistan International Airlines Consortium, Arif Habib, has cautioned that Pakistan International Airlines may face operational collapse if the government does not roll back the sharp increase in jet fuel prices.
Speaking in a television interview, Habib said the recent spike in aviation fuel costs has placed unsustainable pressure on the airline. Jet fuel (JP-1) prices have surged dramatically in recent weeks, reportedly rising from Rs190 per litre at the start of March to around Rs472, driven by global supply disruptions linked to tensions involving United States and Iran.
He argued that the government has raised aviation and high-octane fuel prices to offset the fiscal burden of subsidising fuel for the public, effectively shifting costs onto sectors like aviation. While authorities aim to cushion ordinary citizens, Habib described the policy as financially unsustainable.
According to him, PIA has managed to absorb the shock temporarily, but continued high fuel costs could make operations unviable. He warned that without policy reversal, the airline may be forced to shut down.
Officials, including Finance Minister Muhammad Aurangzeb, have defended the approach, citing targeted relief measures funded through national resources.
Industry experts note that fuel accounts for up to 40 percent of airline expenses. The ongoing surge has already pushed ticket prices significantly higher, raising concerns about affordability and the global competitiveness of Pakistani carriers.
