ISLAMABAD: The Pakistan International Airlines (PIA) has decided to end discounts given to individuals from various sectors in view of a rise in jet fuel prices due to the ongoing Middle East conflict, a PIA spokesman said on Sunday.
The United States-Israeli war on Iran, which began on Feb. 28, has disrupted global energy and cargo supplies, particularly through the Strait of Hormuz that has been choked by Iran since the start of the conflict.
Last week, jet fuel averaged at $195 a barrel, according to the International Airport Transport Association, more than double the average last year. On Friday, jet fuel price in Pakistan was increased by Rs40 ($0.14), taking it to Rs517.17 ($1.86) per liter, local media reported, citing aviation sources.
In view of the price hike, PIA spokesman Abdullah Khan said the airline has ended the discounts given to students, banks, senior citizens, journalists, retired military personnel and members of the Airports Security Force (ASF).
“PIA is under severe pressure due to expensive jet fuel,” Khan told Arab News. “That is why the discounts given to people from all sectors have been ended.”
The decision has been taken until fuel prices return to normal, the PIA spokesman added.
The airline, which had accumulated more than $2.8 billion in losses, was privatized in December last year, when a consortium led by Arif Habib Group acquired a 75 percent stake in PIA for Rs135 billion ($482 million), valuing the airline at Rs180 billion ($643 million).
The sale represented Pakistan’s most ambitious attempt in decades to reform the debt-laden airline, with the government saying the move would end decades of state-funded bailouts and help revive the carrier.
Shortly after acquiring 75 percent stake in the airline, Habib said he had planned to renovate planes, improve maintenance and flight schedules, and introduce new aircraft to revive the airline.
