Pakistan’s first provincial airline, Air Punjab, is set to launch in April 2026 with a seven-aircraft fleet serving domestic routes before expanding internationally.
Pakistan’s first provincial airline is weeks away from becoming a reality. Air Punjab, owned and operated by the Punjab government, is set to begin commercial operations in April 2026, with Chief Minister Maryam Nawaz Sharif personally overseeing final preparations. The announcement was confirmed by official sources cited by the Associated Press of Pakistan on February 20.
The idea for a provincial airline was first raised in November 2024, following the federal government’s failed attempt to privatize Pakistan International Airlines. The only bid received for PIA came in far below the government’s minimum price of Rs85 billion, stalling the privatization process entirely.
In April 2025, Chief Minister Maryam Nawaz Sharif formally approved the Air Punjab project, directing officials to lease four Airbus aircraft to begin domestic operations. By July 2025, Air Punjab (Private) Limited was officially incorporated with the Securities and Exchange Commission of Pakistan at the Lahore Company Registration Office. The provincial government subsequently advertised vacancies for key management positions including Chief Executive Officer, Chief Operating Officer, and Chief Financial Officer.
Fleet, Routes, and Operations
Air Punjab will launch with a fleet of seven passenger aircraft and will operate domestic routes exclusively for its first two years. The Lahore to Islamabad corridor has been confirmed as one of the airline’s first routes. International services, including planned flights to Dubai and Jeddah, are scheduled to follow after the airline completes its mandatory two-year domestic phase and secures the required international licensing.
Expected ticket fares, according to earlier government reports, are set at Rs15,000 for domestic routes, Rs40,000 for Dubai, and higher for other international destinations once those routes open.
Chief Minister Maryam Nawaz’s existing government helicopter will be inducted into the Air Punjab fleet as its first operational asset. The Chief Minister, along with cabinet members and senior provincial officials, will use Air Punjab aircraft for official travel. No separate aircraft will be purchased for the Chief Minister or any VIP use. When government officials travel on Air Punjab, the full commercial fare will be paid.
All aircraft, existing and newly acquired, will be operated on a fully commercial basis. Officials stated that a financial strategy has been finalized to ensure the airline does not place an additional burden on the provincial treasury.
Costs and Financial Structure
The estimated project cost ranges between Rs12 billion and Rs15 billion, according to the working committee overseeing the airline’s establishment. Air Punjab plans to lease five Airbus A320 aircraft, with each aircraft costing approximately $375,000 per month, bringing total annual leasing expenditure to roughly Rs6.3 billion.
Pilot salaries have been proposed at between Rs1.5 million and Rs2.5 million per month. The airline is being structured under a public-private partnership model to support long-term financial viability.
The Punjab cabinet approved the establishment of Air Punjab (Private) Limited in November 2024, with Chief Minister Maryam Nawaz Sharif presiding over the meeting. The company was formally registered with the SECP on July 24, 2025.
Punjab Information Minister Azma Bukhari confirmed the launch timeline and stated that all arrangements will be made public once finalized. She also clarified that the airline is not intended for personal or VIP use, and that all aircraft being added to the fleet are part of Air Punjab’s commercial operations.
Air Punjab is part of a broader infrastructure push by the Punjab government that also includes the proposed Lahore to Rawalpindi bullet train, the Lahore Yellow Line expansion, and the Gujranwala Mass Transit Line. The Lahore to Rawalpindi bullet train, which would cover the route in two hours and 20 minutes, received in-principle approval from the Chief Minister at the same time as the Air Punjab project.
Punjab contributes approximately 35 percent of Pakistan’s federal tax revenues. The provincial government has described Air Punjab as a step toward improving domestic connectivity, boosting tourism, and stimulating trade across the province.
With an April 2026 launch confirmed, Air Punjab is on track to become Pakistan’s first airline owned and operated by a provincial government. Once operational, it will offer Pakistani travelers a new option on key domestic routes, with international expansion to follow after the initial two-year phase.
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