Warning letters have also been issued by the Civil Aviation Authority (CAA) to the ground staff including the terminal manager and the flight supervisor of Pakistan's flag carrier, Dawn newspaper reported.
The PIA had allowed seven passengers to travel standing in the aisles all the way from Karachi to Madina on January 20, prompting a probe into the serious breach of security regulations by the loss-making airline.
The Boeing 777 aircraft has a seating capacity of 409, including jump seats for staff, while flight PK-743 carried 416 passengers.
The CAA directive, issued on August 30, ordered that the pilot's license of Capt Adil be revoked for a year, while that of first officer Javed for three months.
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"Terminal manager Shah and flight supervisor Shahani are issued with a letter of warning under intimation to the CAA.
Earlier it was reported that the senior purser (flight attendant), Hina Turab, had informed the captain about "chaos" in the cabin because the passengers were "over and above" the configuration, but the captain told her to "adjust" those passengers as the aircraft was on the taxi way.
The boarding passes issued to the extra passengers were hand-written and not computer-generated, reports had said.