Pakistan International Airlines (PIA) has announced that it has been forced to cancel a total of 537 flights since October 13, after the Pakistan State Oil (PSO) took the drastic step to reduce fuel supply due to unpaid dues.
The same source reported that last week 49 domestic and international flights were also canceled across various cities, including Karachi, Lahore, Islamabad, Quetta, Multan, Peshawar, and more, all due to the PSO’s decision to cut fuel supply to PIA, VisaGuide.World reports.
Amid the financial crisis, the shutdown of flight operations and the ongoing privatization process, PIA Chief Executive Officer (CEO) Amir Hayat has written a ‘motivational letter’ to employees. Hayat has urged all employees to maintain a collective focus on ensuring organizational compliance through cohesive teamwork as the airline proceeds with its privatization.
In addition, PIA recently disbursed PKR 220 million (approximately USD 789,000) to PSO for a two-day fuel supply. Up to this point, the PIA spokesperson disclosed that the airline has remitted PKR 500 million to PSO for fuel procurement, emphasizing that the national flag carrier is making daily payments to PSO.
Moreover, PIA is presently procuring fuel for its profitable routes, including destinations in Saudi Arabia, Canada, China, Kuala Lumpur, and others.
Founded in 1946, PIA has served as Pakistan’s flagship airline and has been an essential link connecting the nation to the global community. While it flourished during its peak years in the 1960s and 1970s, it has faced increasing challenges in recent decades, facing issues such as increased competition, management problems and financial difficulties.
PIA is currently facing an escalating debt crisis, making it difficult to cover immediate operating expenses. The airline’s ageing fleet and inadequate maintenance have led to repeated technical problems, resulting in the grounding of many aircraft.
Ongoing disputes between management and unions have disrupted flight schedules, with workers protesting delayed wages and other grievances. This situation has left thousands of passengers stranded, both domestically and abroad, damaging PIA’s reputation and eroding confidence in its customer base.
Each canceled flight adds to the airline’s financial losses, pushing it deeper into debt and raising concerns about its solvency.
The crisis at Pakistan International Airlines is not limited to the airline; it poses a significant concern to Pakistan’s aviation sector. At the same time, a potential decline in PIA could lead to a reduction in domestic and international connectivity, which, in turn, would negatively impact trade and tourism in the region.