KARACHI: Airlines in Pakistan are weighing fare hikes after jet fuel rose by more than Rs 9 per litre, aviation sources said on Monday.
Jet fuel now costs Rs 355.52 per litre. TechJuice reported a previous rate of Rs 346.47 per litre and dated the latest increase to Saturday. Aviation sources put the rise since October 1 at Rs 9.5 per litre. TechJuice gave the increase as Rs 9.05 per litre.
Higher fuel costs have increased airlines’ operating expenses, the sources said. Carriers are considering higher passenger fares to recover the added expense.
The International Air Transport Association (IATA) warned in its June outlook that fuel costs were squeezing airline margins worldwide.
IATA linked the global cost pressure to disruptions in Middle Eastern oil supplies and refining. Reduced refinery output had tightened supplies of crude oil and refined products.
Read: Jet Fuel Price Cut by Rs111.44 Per Litre in Pakistan
It forecast a global airline fuel bill of $350 billion in 2026, nearly 40% above $252 billion in 2025. Fuel would account for 31.4% of operating expenses, compared with 25.4% last year.
IATA Director General Willie Walsh described the pressure in a June 7 statement. “Airlines are bearing the brunt of the fuel price shock,” he said.
Globally, airlines had hedged roughly one-third of their expected fuel consumption for this year, according to IATA. Those arrangements help smooth short-term price fluctuations but do not remove exposure to sustained increases.
Its outlook found limited room for further efficiency gains. Airlines already operated fleets intensively, while ageing aircraft and supply constraints were pushing maintenance costs higher.