PIA Loses Rs9B from Free, Discounted Tickets

Pakistan International Airlines (PIA) suffered a staggering Rs 9 billion revenue loss from 2011–2016 due to free and discounted tickets, as revealed in the 2024-25 audit report by the Auditor General of Pakistan.

The special audit of Pakistan International Airlines Corporation Limited (PIACL) disclosed that 190,724 discounted tickets were issued over six years, with discounts ranging from 25% to 95%. Notably, 116,273 tickets offered a 95% discount to non-employee passengers on domestic and international routes, charging just 5% of the fare, resulting in a Rs 3.5 billion loss.

The audit report criticized the issuance of these fare concessions without approval from the Chairman or Managing Director, exposing a severe lack of oversight and accountability in management.

From 2008 to 2017, PIA distributed 258,990 free tickets to passengers, excluding employees, incurring a Rs 5.55 billion loss. This practice was flagged as a violation of financial prudence, an abuse of discretionary powers, and a collapse of internal controls.

The report underscored deficiencies in transparency and accountability, noting that approvals for free and discounted tickets were absent, flouting established policies and procedures.

Despite repeated requests from the audit office between 2018 and 2023, the issue remained unresolved, with the Departmental Accounts Committee (DAC) failing to convene necessary meetings to finalize the report.

PIA’s neglect of checks and balances and disregard for corporate financial health have sparked serious concerns about its governance and management practices.