Pakistan International Airlines (PIA) may face serious trouble and could even be forced to shut down if jet fuel prices are not brought down, warned Arif Habib, the new majority owner of the national airline.
Arif Habib, chairman of the Arif Habib Group which acquired a 75% stake in PIA in December 2025, said jet fuel prices in Pakistan have surged by nearly 150% in less than a month. The price has jumped from around Rs 180–188 per litre to over Rs 400–471 per litre. He stated clearly that running the airline at these high costs is no longer financially viable.
The sharp increase in fuel prices has put heavy pressure on PIA, especially as the new private management prepares to take full operational control next month. Fuel is one of the biggest expenses for any airline, often making up 30 to 40 percent of total costs. This sudden rise has made PIA less competitive compared to international airlines.
Arif Habib has urged the government to review and rationalise jet fuel pricing policies. He asked authorities to reduce refining margins so that local fuel prices align more closely with regional and global levels.
The warning comes at a critical time for PIA’s turnaround plan after privatisation. If the high fuel costs continue, the airline may have to raise ticket prices further, cut flights, or suspend some routes. This situation poses the first major challenge to the success of PIA’s privatisation.
