PIA recovers Rs5 million from staff in seat allocation fraud

Pakistan International Airlines (PIA) has recovered Rs5.06 million from more than 20 employees implicated in an alleged seat allocation fraud at Lahore’s Allama Iqbal International Airport, according to official audit documents.

The documents show that ground staff allegedly collected additional charges from passengers for premium, extra-legroom and bulkhead seats on domestic and international flights but did not deposit the amounts into the airline’s accounts.

Instead, the employees allegedly altered system records to show the seats as standard seats, concealing the additional charges.

The financial irregularity was identified by the Lahore Finance and Audit Committee during an audit of records for May 2024 and May 2025. More than 20 employees and officers, including three women, were implicated in the case.

Following the audit findings, Lahore Airport Station Manager Ashfaq Hussain Awan was directed to take formal action. According to the documents, the recovered amount was deducted from the salaries of the employees concerned and deposited into PIA’s account.

Despite the recovery, the employees reportedly continue to work in their respective positions. Departmental disciplinary proceedings were required under PIA rules, but further administrative action was halted following interventions by senior officials, the report said.