Air travel in Pakistan has seen many fare changes—both increases and reductions—in recent months. Both Pakistan International Airlines (PIA) and private carriers have adjusted their ticket prices, often in response to economic pressures, fuel costs, competition, and regulatory changes. Below is a summary of what has been happening, why it matters, and where things might be headed.
Why Fares Move Up or Down
Before exploring specific examples, it’s helpful to understand what makes airline fares change:
- Fuel prices and foreign exchange rates often drive ticket cost up.
- Regulatory taxes or duties (like the Federal Excise Duty) can add to cost.
- Availability of flights and demand levels—when schedules are disrupted or when demand is high, airlines raise fares.
- Competition between airlines forces them to cut fares sometimes.
- Promotional schemes or government waivers may lead to discounts.
Major Fare Changes by PIA (National Airline)
PIA has made several moves in recent times—some fare cuts, some fare increases, and some regulatory events that affect fares indirectly.
1. International Fare Reductions via Tax Waiver
In December 2024, PIA reduced international ticket prices after the government arranged a waiver on the Federal Excise Duty (FED) with the International Monetary Fund (IMF). As a result:
- Travelers to the USA could save up to Rs 350,000.
- Flights to the Middle East and Africa saw savings of up to Rs 105,000.
- Europe, Australia, New Zealand, and the Far East fares dropped by up to Rs 210,000.
2. Umrah/ Saudi Flights Cut by 30%
Also in 2024, PIA introduced a special 30 % discount on flights from Karachi to Jeddah and Madinah, in response to Umrah demand. The one-way ticket was priced at Rs 56,000, while round-trip cost about Rs 88,000, inclusive of taxes. These rates applied for tickets booked by end-August—with travel permitted until end-September.
3. Recent Increases in Domestic & International Fares
In July 2025, reports confirm that PIA increased both domestic and international fares. This is part of a broader trend across transport modes, as fuel prices rise.
Additionally, earlier reports showed PIA increasing its international two-way fares (e.g. Lahore to Dubai, Toronto) by about 25 %—raising costs significantly in economy and executive classes.
Private Airlines: How Their Fares React
Private carriers in Pakistan—AirBlue, Serene Air, FlyJinnah, AirSial etc.—also adjust fares, often based on what PIA does, or due to their own cost pressures.
1. Private Airline Fare Hikes When PIA Struggles
Whenever PIA faces crises—fuel shortages, schedule disruptions—private airlines tend to increase fares. For example:
- After PIA’s fuel supply was disrupted by Pakistan State Oil (PSO), private airlines raised domestic fares significantly. Karachi-Lahore one-way tickets rose to between Rs 35,000–49,000, and Karachi-Islamabad fares to Rs 55,000–61,000.
- In 2023, private airlines were reported charging up to 30 % more on some domestic routes during PIA’s trouble.
2. Recent Moves for Cheaper Fares: Air Karachi
In July 2025, Air Karachi, a new private airline, announced plans to enter the domestic market with tickets priced up to 40 % cheaper than existing rates. This is possible because of lower operating costs thanks to Chinese-manufactured aircraft. The venture is aimed at major cities across Pakistan.
Key Events or Pressures Affecting Fare Changes
Below are underlying events that have triggered fare shifts.
- Fuel and foreign exchange price rises: As oil prices or costs of imported aviation fuel increase, airlines’ costs go up—forcing fare increases.
- Disruption in PIA operations—fuel supply halted, aircraft grounded. These cause reduced competition and flight availability, pushing private airlines to raise fares.
- Regulatory changes, like the FED waiver, can reduce costs and drive fares down.
- Promotional periods or seasonal demand, such as Umrah season, Pilgrimage, or holidays.
- New entrants like Air Karachi offering lower cost planes and cheap fares prompt competition.
How This Impacts Travellers
These fare changes have real effects on people:
- Domestic travel gets expensive during peak times (tourism to northern areas, holidays).
- International flights remain out of reach for many until promotional discounts are offered.
- Travel planning becomes uncertain—prices can jump or fall based on external factors.
- New budget-oriented airlines and special discounts give travelers occasional relief.
Facts from Recent Sources in Simple Table
| Airline / Situation | Direction of Fare Change | Typical Routes / Notes |
|---|---|---|
| PIA – Intl. Tax Waiver | Decrease | Flights to USA, EU, Middle East, Far East; savings up to Rs210,000–350,000 |
| PIA – Umrah (Karachi → Jeddah/Madinah) | 30 % Discount | One-way Rs 56,000; Return Rs 88,000; booking until August 31, travel until Sept 30 |
| PIA – Fuel & Cost Pressures (Domestic & Intl)** | Increase | Fares rising 25 %; Karachi-Lahore, Lahore-Dubai, etc. |
| Private Airlines – When PIA in crisis | Increase | Karachi-Lahore, Karachi-Islamabad routes; higher fares due to demand and lack of capacity |
| New entrant: Air Karachi | Projected Decrease | Up to 40 % cheaper domestic fares anticipated; still launching |
What This Suggests for the Near Future
Based on trends up to mid-2025, here are what’s likely:
- More promotional fare cuts when possible, especially international ones, if taxes or duties are adjusted.
- Private airlines with competitive models (lower operating cost or economy-focused service) will push down fares in some domestic markets.
- Price volatility will continue—fares may rise quickly when fuel or dollar weakens; drop when subsidies or waivers are introduced.
- Government regulation or oversight (like the Competition Commission) may intervene if fare hikes are seen as unfair.
Summary
- PIA has cut fares for special international routes via tax relief, and seasonal discounts like for Umrah, but is also increasing fares in many other areas due to cost pressures.
- Private airlines seize on gaps when PIA struggles to maintain schedules—this often lets them charge more. But new airlines are joining in with lower-cost models.
- Travellers have mixed effects—sometimes benefits, sometimes higher costs. Planning ahead, watching for sales, and comparing airlines become more important than ever.
What Travellers Can Do
If you’re thinking of flying soon, here’s how to save or avoid being surprised by high fares:
- Compare airlines: Check both PIA and private carriers. New ones like Air Karachi may offer lower rates once they begin.
- Watch for announcements: For example, tax waivers or discounts before religious or holiday seasons.
- Book early—promotional fares are often available months ahead.
- Flexibility in route or date: Sometimes flying from a different city or a day earlier can save a lot.
- Follow fuel and exchange rate trends—they often foreshadow fare movements.
Conclusion
Flight fares in Pakistan have been moving up and down a lot. PIA has offered big discounts when regulatory or promotional conditions allow, especially for international and Umrah flights. But domestic fares, especially by private airlines during periods of high demand or when PIA is disrupted, tend to increase. The market stays competitive, and new players with lower-cost models may bring relief in some areas. As a traveller, being informed, watching for deals, and choosing flights smartly will help you get the best value.
