ISLAMABAD: Foreign airlines now account for more than 65 percent of Pakistan’s international passenger traffic, marking a major structural shift in the country’s aviation market over the past two decades.
The findings, drawn from the Gallup Pakistan Digital Analytics Aviation Dashboard, show that in 2023-24 foreign carriers transported 65.09 percent of all international passengers traveling to and from Pakistan. In comparison, Pakistan International Airlines (PIA) carried 18.90 percent, while other Pakistani airlines collectively accounted for 16.01 percent.
Combined, domestic carriers now hold roughly one-third of Pakistan’s international aviation market.
The current distribution represents a significant departure from the market structure in 2006-07. At that time, PIA alone commanded 42.84 percent of international passenger traffic, while other Pakistani airlines held 6.73 percent. Foreign airlines accounted for 50.43 percent.
Domestic carriers collectively controlled nearly half of the market in 2006-07, compared to about 35 percent today.
The report characterises the redistribution of market share as a long-term structural trend rather than a short-term fluctuation. The sustained decline in PIA’s share has reduced the role of Pakistan’s national carrier in the international segment, while foreign airlines have steadily expanded their footprint.
According to the analysis, the shift has economic implications, including reduced retention of foreign exchange earnings within the country and potential impacts on aviation-related tax revenues. It may also affect Pakistan’s leverage in negotiating international air service agreements.
Private Pakistani airlines have grown over the years but have not expanded sufficiently to offset the contraction in PIA’s international operations, the data show.
While reliance on foreign airlines ensures continued international connectivity, it also means that a substantial portion of ticket revenues generated from international travel flows abroad.
The report points to broader competitiveness and institutional challenges within Pakistan’s domestic aviation sector, including fleet capacity constraints, regulatory issues, financial sustainability concerns and operational reliability.
Over nearly two decades, Pakistan’s international aviation market has shifted from relatively balanced competition between domestic and foreign carriers to clear foreign dominance.
The data are based on international passenger traffic flows from Pakistan between 2006-07 and 2023-24.
