PIA Hikes Fuel Surcharge as Gulf Crisis Sends Operating Costs Soaring
ISLAMABAD — March 12, 2026
Pakistan International Airlines (PIA) has announced a significant increase in fuel surcharges across its domestic and international network as the escalating conflict in the Gulf continues to drive up global aviation fuel prices.
A spokesperson for the national flag carrier, Abdullah Khan, confirmed that the airline’s fuel costs have surged by 34% due to the ongoing regional crisis. To offset these rising operational expenses, PIA has implemented the following surcharge adjustments:
- Domestic Flights: An additional surcharge of $20 per leg.
- International Flights: Surcharges have been increased by up to $100, depending on the destination.
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Regional Turmoil and Operational Challenges
The fuel price hike follows a period of intense disruption for Pakistani aviation. Over the last 12 days, PIA has been forced to cancel 165 flights, with routes to the Gulf region—which account for roughly 34% of the airline’s total operations—being the most severely affected.
Industry-wide, the impact has been even broader. Reports indicate that jet fuel prices in Pakistan have nearly doubled this month, leaping from Rs188.93 to Rs342.32 per litre. This spike is attributed to global oil supply disruptions and the closure of key airspaces following military escalations involving Iran and regional counterattacks.
Wider Industry Impact
PIA is not alone in its struggle; other domestic and international carriers operating in Pakistan have also revised their fare structures to remain viable. Travel agents report that approximately 80 daily flights to Gulf countries are currently being cancelled, further tightening supply and driving up ticket demand.
The surcharge comes at a critical time for the recently privatised PIA, which had only recently resumed its long-haul operations to Europe and Britain following a year-long safety ban.
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