How Much Financial Damage Did Pakistan Airlines Face from the Iran Conflict?

Aviation sector in Pakistan has incurred approximately $72 million in losses due to flight cancellations caused by the ongoing conflict in Iran affecting domestic and international routes.

Pakistan Airport Authority (PAA) spokesman Saifullah Khan confirmed that regional airspace closures have disrupted airline operations, with preliminary reports estimating total losses at nearly Rs 20 billion.

ایران جنگ سے پاکستانی ایوی ایشن کو 20 ارب روپے کا نقصان

ایران جنگ شروع ہونے کے بعد سے اب تک پاکستانی ہوابازی کے شعبے کو 20 ارب روپے کا خسارہ ہو چکا ہے، جس کے بعد پاکستان نے غیرملکی ایئرلائنز سے کہہ دیا ہے کہ ’واپسی کی پرواز کے لیے اپنا ایندھن ساتھ لائیں۔‘ pic.twitter.com/AG7c0aQWOH

— Independent Urdu (@indyurdu) March 27, 2026

He added that despite these disruptions, Pakistani airports and airspace remain completely open, safe, and operational, allowing airlines to continue services according to their own schedules.

Hundreds of flights connecting Pakistan to Gulf destinations such as Dubai, Doha, Abu Dhabi, Muscat, and Sharjah have been cancelled since the outbreak of the Iran conflict.

Aviation expert Asfar Malik stated that since February 28, over 500 flights bound for Pakistan have been cancelled, while around 600 additional flights have experienced delays or operational changes.

Pakistan International Airlines (PIA) spokesman Abdullah Hafeez reported that PIA alone has cancelled roughly 350 flights, resulting in estimated losses near Rs 3.5 billion based on average revenue per flight.

The recent increase in oil prices has further raised operating costs, placing additional financial pressure on airlines struggling with cancellations caused by the ongoing Middle East conflict.

Malik highlighted that flights to Gulf countries form the backbone of the international traffic, carrying workers, pilgrims, and expatriates, meaning disruptions collapse the system entirely rather than partially.

Former PIA chief Arshad Malik stressed that fuel expenses account for 40-45 percent of operating costs, recommending the government seriously consider fuel hedging to support airline stability during crises.

Arshad Malik suggested that the government provide additional and flexible flight slots to Gulf carriers for three months, allowing direct flights from Pakistan to Europe instead of via Gulf hubs.

This approach could reduce landing, parking, and fuel charges while simultaneously boosting local hotel, hospitality, and airport-related services by attracting increased international operations directly to Pakistan’s airports.

PAA issued a NOTAM directing foreign airlines to bring return fuel and limit refuelling in Pakistan, protecting domestic reserves amid global supply chain disruptions from the Iran conflict.

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