ISLAMABAD: Pakistan International Airlines (PIA) has canceled 349 flights in the last two weeks due to a shortage of fuel, it said on Thursday, underscoring the difficulties faced by the cash-bleeding national flag carrier.

The flight cancellations since Oct 14 have affected both domestic and international routes, a PIA spokesperson told Reuters.

Flights are being rescheduled on a daily basis, the company said in a statement, without giving details on how long the crisis would last. “The flights are being scheduled as per the availability of fuel,” it said.

PIA and the Pakistan State Oil company (PSO) have been locked in a dispute over payments. The airline says PSO has suspended its credit line for the fuel, and is now releasing supplies only against a daily advance payment.

“The PIA is trying to manage funds,” the statement said, adding that the resumption of the usual schedule would depend on the availability of funds.

It said Canada, Turkey, China, Malaysia and Saudi Arabia would be priority destinations when flights resumed and it would keep passengers updated on flight schedules.

PIA flights to Europe and the UK have been suspended since 2020 after the European Union’s Aviation Safety Agency revoked the national carrier’s authorisation to fly to the bloc following the pilot licence scandal.

Earlier, Business Recorder reported that PSO restored fuel supply to at least 20 flights of PIA for various local and international destinations scheduled for Monday upon payment of Rs84 million by the airline.

On Monday, PIA released, in two instalments, the payments to PSO. The first was Rs59 million and the second was Rs25 million on the same day.

Caretaker Prime Minister Anwaar-ul-Haq Kakar also stated on Monday that the government would provide all possible support to PIA until the privatisation of the State-Owned Enterprise (SOE) is completed.

The interim PM directed relevant authorities that the process of PIA’s privatisation be accelerated and completed as soon as possible, and he should be regularly informed about the progress.

The crisis comes after Pakistan announced it would privatise the airline as part of a fiscal discipline plan agreed under an International Monetary Fund (IMF) bailout agreed in June.