Indian Airlines experiencing a loss of Rs4.1 billion due to airspace closure, as reported by PAA; this information was shared with the National Assembly.
Pakistan's decision to close its airspace to Indian aircraft has resulted in substantial economic losses for the country, with the total estimated at around Rs 1,240 crore (approximately $14.4 million) since its imposition on April 24, 2025. This loss primarily stems from the Pakistan Airports Authority (PAA) forfeiting overflight fees, due to the ban affecting between 100 to 150 Indian aircraft daily and resulting in nearly a 20% reduction in transit air traffic.
The airspace ban, which has been extended until August 24, was a necessary measure to safeguard civilian lives, protect critical infrastructure, and support military operations amid the deteriorating bilateral relationship. Defence Minister Khawaja Asif defended the decision, calling it a "costly but essential sacrifice."
The PAA's overall daily revenue from overflight charges has grown from about $508,000 in 2019 to $760,000 in 2025, underscoring the higher traffic volumes Pakistan had before the ban. However, the ban has impacted 100-150 Indian aircraft daily, reducing Pakistan's transit traffic by about 20% during this period.
Indian carriers, especially Air India, face increased operational costs and service suspensions, estimating losses of up to $600 million over a year partly due to this ban. The restrictions have forced Indian airlines to take longer flight routes and operate less efficiently, particularly on long-haul flights including US services.
Pakistan's Ministry of Defence has maintained the ban as a matter of national defense and sovereignty. In response to the crisis, Minister for Information and Broadcasting Ataullah Tarar announced expanded efforts to counter misinformation, while state media outlets have bolstered initiatives through a newly established Digital Communication Department and a dedicated "Fact Checker."
The closure of Pakistan's airspace to Indian airlines has disrupted longstanding regional aviation patterns, signalling the severity of the diplomatic fallout since the last major confrontation in 2019. The Pakistan Airports Authority reported a revenue loss of Rs4.1 billion due to the closure of airspace to Indian airlines, a price the government is willing to pay to defend its sovereignty.
References:
- The Express Tribune
- Dawn
- Reuters
- Air India
- The Pakistan Airports Authority (PAA) has reported a revenue loss of Rs4.1 billion due to the closure of its airspace, a significant portion of which stems from forfeited overflight fees.
- The airspace ban, primarily affecting Indian aircraft, has disrupted the general news of regional aviation patterns, with Indian carriers, such as Air India, facing increased operational costs and service suspensions.
- In politics, Defence Minister Khawaja Asif defended the ban as a "costly but essential sacrifice," while Minister for Information and Broadcasting Ataullah Tarar announced expanded efforts to counter misinformation.
- The ban on air traffic, extended until August 24, 2025, has impacted not just the finance sector, but also the industry and transportation of both countries, potentially causing wider economic implications that go beyond the initial Rs1,240 crore estimated loss for Pakistan.
