Pakistan International Airlines (PIA) may face serious operational challenges as soaring jet fuel prices threaten its viability according to Arif Habib chairman of the Arif Habib Group. Speaking on Saturday Habib warned that the airline could struggle to sustain operations if fuel costs remain at current levels.

Habib’s consortium recently acquired a 75 percent stake in PIA as part of Pakistan’s privatization drive. However he noted that domestic jet fuel prices have surged sharply, rising from around Rs180 per litre to over Rs400 within a month placing the airline at a disadvantage compared to international competitors.

The warning comes ahead of the group’s takeover of full operational control next month. Rising energy costs, driven by geopolitical tensions in the Middle East have impacted Pakistan’s aviation sector prompting concern within the government.

A cabinet committee led by Muhammad Aurangzeb has also highlighted the issue, warning that higher fuel prices are reducing the competitiveness of local airlines.

Habib has urged the government to rationalize fuel pricing, stating that sustained losses could undermine efforts to revive PIA and restore its international standing.