PIA and Afghanistan’s Kam Air launch interline transit link via Islamabad
Pakistan International Airlines and Kam Air have signed an interline cooperation agreement, creating a single‑ticket transit route through Islamabad for Afghan passengers traveling to Gulf destinations.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Transport sector likely to benefit from increased passenger traffic and revenue – Buy bias on Transport.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- TransportPositively affected
Companies
Mentions in This Briefing
Sectors: Transport — Positive · Buy bias. PSX tickers: PIAHCLA, PIAA, PIA. Transport sector likely to benefit from increased passenger traffic and revenue – Buy bias on Transport.
Full Story
Open on Business Recorder## Interline Cooperation Agreement
Pakistan International Airlines (PIA) and Afghanistan’s Kam Air announced an interline cooperation agreement that will enable a seamless transit route via Islamabad International Airport. The partnership allows passengers to book the entire journey – from Kabul to Gulf destinations – on one reservation, with checked baggage transferred directly between the two carriers.
## Operational Details
Under the agreement, travelers will not need to collect and re‑check their luggage at Islamabad, and they can remain airside, bypassing Pakistani immigration, provided they stay in transit. The first route to be launched is Kabul‑Islamabad‑Dammam, targeting Afghan diaspora and workers heading to eastern Saudi Arabia.
## Expansion Plans
Both airlines intend to roll out a second phase covering additional high‑demand Gulf cities such as Madinah, Muscat and Al Ain. The expanded network aims to serve religious pilgrims, labor migrants and business travelers, positioning Islamabad as a regional air‑transit hub for South and West Asia.
## Market Perspective
While PIA is not listed on the Pakistan Stock Exchange, the agreement signals increased passenger traffic for the airline and could boost revenue for the broader Transport sector. The move may also improve bilateral travel ties, supporting ancillary services at Islamabad International Airport.