PIA issues Rs 35 mln in discounts to travel agencies

KARACHI: Pakistan International Airlines (PIA) administration provided more than Rs 35 million in discounts to different travel agencies in domestic tickets, despite the airline’s already staggering losses in the billions, ARY News reported on Thursday.

According to the details, the discounts were given on 2620 tickets, with discount rates ranging from 50 per cent, 70 per cent and 100 per cent. The total cost of these tickets without discounts was Rs 3.53 billion, while the discount given on these tickets was Rs 160.43 million.

The Auditor General of Pakistan raised objections to this decision, citing the airline’s financial situation and the fact that agencies are not authorized to provide discounts on tickets without a written request.

The provision of domestic tickets was revealed in the audit report of the airline’s revenue management department for 2020, and the audit report for 2021-22 is also based on an audit of the provision of domestic tickets.

Despite these financial issues, the airline apparently favors giving discounts on domestic tickets to agents, according to the audit report. In 2022, the airline correctly decided to implement discounts of 50% and 75% on domestic tickets according to IATA regulations.