Pakistan International Airlines (PIA) has decided to fix its airfares in US dollars from August 12 as advised by the International Air Transport Association (Iata), Khaleej Times has reported.

According to the PIA’s directive to travel agents and sales outlets, the airline has approved the ‘filing of fares in the US dollar’ of all ex-Pakistan domestic flights, as well as international current fares, penalties and charges; these will be converted from the Pakistani rupee to the US currency with effect from August 12.

Other airlines in the private sector will also follow the Iata directive and will charge airfares in US dollar or in Pakistani rupee equivalent to the US currency at the time of booking.

“All ex-Pakistan fares will be approved and filed in the US dollar, but will be reflected on the ticket in local currency by converting at system exchange rate. Whenever there’s any fluctuation in the currency, the fares in Pakistan rupee will automatically be updated,” the statement said.

When Khaleej Times contacted, PIA’s manager for public affairs Athar Hasan confirmed the news and said the decision is taken following a recent Iata directive to ensure best international practices in the airline industry.

To a question about how exchange rate will be calculated, he said the Iata-consolidated exchange rate will be considered to convert the US dollar fare amount to the rupee equivalent.

“The new fare structure will be effective from August 12 and passengers will be able to check prices in the US dollar and Pakistan rupee on the airline’s website,” Hasan said.

Travel agents said the latest move will increase airfares on Pakistani routes due to a weak rupee as it is evident with the approximately 50 per cent devaluation since December 2017. However, passengers who book tickets outside will get the advantage of competitive rates.