PIA Increases Federal Excise Duty on International Flights
KARACHI: Passengers flying internationally from Pakistan will now face higher costs, as Pakistan International Airlines (PIA) and other local airlines have implemented a significant increase in the federal excise duty (FED) on their tickets. This hike, introduced by the federal government in the budget for 2024-25, affects all classes of international travel.
The FED on economy and economy plus tickets has surged by 150%. Consequently, passengers who previously paid Rs5,000 in FED on economy tickets will now be charged Rs12,500. This steep rise will impact a large number of travelers, particularly those seeking more affordable travel options.
For those traveling in the Club Class to the USA, the increase is even more pronounced. The FED has risen from Rs250,000 to Rs350,000, representing a substantial additional cost for premium travelers. Similarly, for flights to Africa and the Middle East, the FED has been increased from Rs75,000 to Rs105,000.
European destinations are also affected by this hike. The FED on tickets for flights to European cities has increased from Rs150,000 to Rs210,000. This increase will likely influence travel plans for many passengers who frequently fly between Pakistan and Europe.
Additionally, flights to Australia, New Zealand, and the Far East have seen a 40% increase in FED, now set at Rs210,000. This adjustment will impact those traveling to and from these regions, further escalating travel costs.
The new FED rates mark a significant shift in the cost structure for international travel from Pakistan, potentially influencing travel decisions and overall passenger traffic. The increases in FED across various routes underscore the government’s move to generate additional revenue from the aviation sector.
In contrast to these hikes, Pakistan International Airlines recently announced a reduction in Umrah fares for pilgrims. This move is aimed at facilitating religious travel for many Pakistanis. The revised fares for Umrah pilgrims are as follows:
- Karachi to Madina: PKR 76,000 (plus tax) for a two-way ticket.
- Islamabad, Lahore, Peshawar, Multan, and Sialkot to Madina: PKR 86,000 (plus tax) for a two-way ticket.
These reduced fares for Umrah travel come as a relief to pilgrims planning their journeys to the holy cities of Madina and Jeddah. The reduction aims to make religious travel more affordable for a larger number of people, especially during the peak pilgrimage seasons.
Overall, while the increase in FED represents a significant additional burden for international travelers, the reduction in Umrah fares demonstrates PIA’s commitment to supporting religious tourism. The contrasting changes reflect a broader strategy to balance revenue generation with service to key customer segments.
Travelers planning international trips from Pakistan will need to factor in these increased costs, while those embarking on Umrah pilgrimages can take advantage of the reduced fares. As these changes take effect, the aviation industry and passengers alike will need to navigate the evolving landscape of travel expenses.
