International Air Transport Association (IATA)’s Post

Aviation is a key enabler of Pakistan’s economy. Pre-COVID, the sector supported 425,000 jobs and contributed USD2.8 billion to the country’s GDP. Instead of ensuring positive policies are put in place to encourage the growth in air traffic and travel demand, it is disappointing that the Federal Excise Duty (FED) on air tickets for international travel has been increased on 1 July, with the FED more than doubling in some cases.   Repeated FED increases will only dampen demand to Pakistan by increasing ticket prices. This will have devastating effects on the travel industry and the economy as a whole.   We urge the government to reconsider this decision, and prioritize the growth and development of Pakistan's travel and tourism industry.   Increasing the FED also contradicts with the FED Act 2005, and the Pakistan government’s commitments under ICAO’s guidelines and recommendations.   Not only did the government fail to engage the industry in consultations, it surprised the industry by giving three days notice for implementation. This is causing problems for passengers, airlines and the authorities.   There are many issues affecting the aviation industry in Pakistan, including blocked funds. The government needs to do a better job at supporting this industry that is vital to the people and economy.   #FEDonFlights #TravelToPakistan #EconomyMatters"

While air travel is recovering steadily in the region, we continue to see pressures that threaten to slow the pace of recovery. One example is increasing taxes. We urge governments in the regions not only to consider the potential impact of tax increases on the aviation industry, but also to work closely with the industry in introducing tax changes. For this region, we saw several last-minute changes that came in over the last weekend of June to be in effect Monday 1 July. The short timelines not only pose a burden to the airline industry for implementation, but also affect passengers. The IATA Best Practices for Ticket Taxes, Fees and Charges (TTFCs) recommend at least 4 months advance notice for modifications: https://lnkd.in/gRdCkCgy

Nigeria’s Air Transport Sector Grows by 4.37% year-on-year - https://lnkd.in/eb_4amzZ latest national accounts for Q3 ’23 reveal that Nigeria’s air transport sector experienced a growth rate of 4.37% year-on-year,

Nigeria’s Air Transport Sector Grows by 4.37% year-on-year - https://lnkd.in/eb_4amzZ latest national accounts for Q3 ’23 reveal that Nigeria’s air transport sector experienced a growth rate of 4.37% year-on-year,

The International Air Transport Association (IATA) has called on Pakistan and Bangladesh to promptly release airline revenues totaling over $720 million that are being held in violation of international agreements. With $399 million trapped in Pakistan and $323 million in Bangladesh, airlines face significant challenges in repatriating earnings crucial for operational expenses such as lease agreements and fuel. Philip Goh, IATA’s Regional Vice President for Asia-Pacific, emphasized the necessity of releasing these funds immediately to ensure continued air connectivity, economic growth, and investment opportunities. While acknowledging the complexities faced by governments in managing foreign currencies, Goh stressed the urgent need for streamlined processes to facilitate timely revenue repatriation and mitigate risks for airlines operating in these markets. https://lnkd.in/eHYsG--K

"NANTA sees further restriction of lower inventory as excessive, profiteering, and unsupportive of the #Nigerian government and the economy amid current economic challenges." | Legitng These is among the core #BASA issues that need to be addressed, ahead of anything else, at the moment; Nigerian air travellers are currently being short-changed via exorbitant fares, due to lack of appropriate negotiations by Nigerian #aviation authorities. Read more: https://lnkd.in/dNyT4SQT https://lnkd.in/dNyT4SQT

Great news for #Pakistaneconomy. Pakistan International Airlines #PIA has cleared all its debts and is now ready for #privatization. This opens up new opportunities for investment in our aviation sector. #PIAplain #PakistanEconomy #economy

Great news for #Pakistaneconomy. Pakistan International Airlines #PIA has cleared all its debts and is now ready for #privatization. This opens up new opportunities for investment in our aviation sector. #PIAplain #PakistanEconomy #economy

𝐀𝐢𝐫𝐥𝐢𝐧𝐞𝐬 𝐀𝐧𝐧𝐨𝐮𝐧𝐜𝐞 𝐇𝐮𝐠𝐞 𝐈𝐧𝐜𝐫𝐞𝐚𝐬𝐞 𝐢𝐧 𝐈𝐧𝐭𝐞𝐫𝐧𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐓𝐢𝐜𝐤𝐞𝐭 𝐏𝐫𝐢𝐜𝐞 𝐀𝐟𝐭𝐞𝐫 𝐍𝐞𝐰 𝐓𝐚𝐱 Airlines have announced a substantial hike in the federal excise duty (FED) on tickets for international flights, effective from July 1. This increase follows the federal government’s recent budget announcement. The new rates have been implemented by all major airlines, including Pakistan International Airlines (PIA), Saudi Air, and Emirates. The adjustment sees a 150% increase in the FED for economy and economy plus tickets. Consequently, passengers who were previously paying Rs5,000 in FED for economy tickets will now be required to pay Rs12,500. The impact is also severe on premium-class travelers. The FED for Club Class tickets to the USA has risen dramatically, from Rs250,000 to Rs350,000. Similarly, duty on tickets to African and Middle Eastern destinations has increased from Rs75,000 to Rs105,000. For flights to European cities, the FED has been elevated from Rs150,000 to Rs210,000. Travelers heading to Australia, New Zealand, and Far Eastern countries will now face a 40% increase, with the duty amounting to Rs210,000. #tax #airline #budget #FED #pakistan #duty

IATA report highlights strong passenger demand growth in Africa