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Airlines reel as jet fuel prices take off

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LAHORE:

Passenger traffic has sharply declined at airports across Pakistan amid rising Iran–US tensions and surging jet fuel prices, with aviation activity at Allama Iqbal International Airport reduced to a trickle, limited largely to Hajj pilgrims and a small number of essential travellers.

Despite a temporary ceasefire in the Middle East, the fallout has continued to disrupt aviation operations.

Passenger numbers for both domestic and international travel have fallen from the hundreds of thousands to just a few thousand, while airlines, both local and foreign, have slashed flight operations by 40 to 50 per cent.

Moreover, fare reductions have failed to revive demand, as escalating jet fuel costs have pushed ticket prices beyond the reach of many. Industry sources say airlines are increasingly cancelling flights due to insufficient passenger loads.

“If operational costs cannot be met, how can flights continue?” an airline source remarked, pointing to declining purchasing power among consumers. “People can barely afford daily necessities. How can they afford air travel?”

As a result, only those compelled by necessity are opting to fly, a stark contrast to earlier periods when flights would sell out quickly.

According to Khawaja Ayub Naseem of the Travel Agents Association, while higher fuel costs have contributed to the downturn, broader economic pressures have significantly weakened demand.

He said domestic fares have dropped from Rs50,000–70,000 for routes such as Lahore–Karachi return tickets to around Rs30,000–40,000, yet passenger numbers remain low.

He added that instability in Gulf countries and tighter visa policies, particularly in the United Arab Emirates and Dubai, have further reduced outbound travel, with visas now being issued in limited numbers.

The combined impact of geopolitical tensions, economic strain, and restricted mobility has pushed Pakistan’s aviation sector to what industry insiders describe as the brink of collapse.



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