Airlines have increased fares by 15-20 percent from May 15 2019, after the adoption of market based exchange rate, a prior condition of the International Monetary Fund (IMF) staff level agreement reached on 12 May 2019, travel agents informed this correspondent. Travel agents clarified that prior to 2007 International Air Transport Association (IATA) would set ticket fares, however, that is no longer the case and airlines increase their fares without any prior notice. "All the airlines have informed us of fare raises," said a travel agent on condition of anonymity.
When contacted, spokesmen for Pakistan International Airlines (PIA) and Emirates Airlines denied any increase in fares, saying ticket prices have not changed due to rupee depreciation in the market.
Talking to Business Recorder, some frequent travellers complained of a fare rise stating that a round trip to Dubai used to cost Rs 50,000 which now costs from between Rs 60,000 to 65,000 depending on the airline.
A PIA official, who declined to be named, stated that airfares depend on the departure date, the closer to the departure date that a ticket is purchased the higher the fare. He said there are 10 sub-classes and fares are charged accordingly. He further said Rs 1000-1500 was increased on domestic flights recently. As far as taxation is concerned, it is CAA which deals taxes, he stated. CAA official denied it arguing that airlines set fares.