ISLAMABAD: The Pakistan International Airlines (PIA) has decided to suspend its flights to Beijing, Kuala Lumpur and destinations in the Middle East over recent hikes in jet fuel prices, the airline said on Monday, reports Arab News.
Jet fuel prices have soared from $85 to $90 per barrel to $150 to $200 per barrel in recent weeks, a financial hit for an industry where fuel accounts for up to a quarter of operating expenses.
The prices have skyrocketed because of the US -Israeli war on Iran, which began on February 28 and has disrupted global energy and cargo supplies, particularly through the Strait of Hormuz.
PIA said on Monday it is suspending flights to Gulf countries, except Saudi Arabia and the United Arab Emirates, till the end of April, while flights to Beijing and Kuala Lumpur will be suspended from April 11 and 14, respectively.
“PIA management has taken the decision in the context of the fourth increase in expensive jet fuel,” the airline said. “The entire burden of fuel prices cannot be put on passengers, so some strict administrative decisions have been taken.”
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 litre, local media reported, citing aviation sources.
PIA said its UAE operations are being limited to 16 flights per week. “It is hoped that prices will soon return to normal at the international level, after which all affected routes will be restored,” it added.
The airline earlier announced it was ending discounts given to students, bankers, senior citizens, journalists, retired military personnel and members of the Airports Security Force in view of the increase in jet fuel prices.
“Only children and newborns will continue to receive discounts,” PIA clarified on Monday.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 per cent 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.
