Pakistan Airspace Ban Costs Indian Airlines About $2 Billion

India's airlines have lost roughly $2 billion since Pakistan shut its airspace to Indian flights in April 2025, prompting route changes and service cuts.

NationPulse Desk

Oct 26, 2026 · 2:02 PM 2 min read

Key takeaways

India's airlines have lost about $2 billion since Pakistan closed its airspace to Indian flights in April 2025.

Air India will suspend Delhi-Vienna flights on October 31 and Delhi-Birmingham flights on November 1.

The airspace ban has raised fuel costs by up to 29 percent and added 30 minutes to three hours to flight times.

Around 800 Indian flights per week, including roughly 640 from Delhi, are affected by the longer routes.

Air India reports annual losses of $455 million to $591 million due to the closure.

India's aviation sector has incurred losses of about $2 billion since Pakistan barred Indian aircraft from its airspace in April 2025, forcing carriers to adopt longer routes and incur higher fuel and operational expenses.

Air India will halt its Delhi-Vienna service from October 31 and its Delhi-Birmingham route from November 1, blaming rising operating costs, jet fuel price hikes and limited aircraft availability caused by maintenance and cabin upgrades.

Reports cited by Express News indicate Air India endures annual losses between $455 million and $591 million because of the airspace ban, and the airline has told the Indian government that the restriction has hit its profit before tax.

Pakistan sealed its airspace to Indian flights on April 23, 2025, after the Pahalgam incident, a measure that has stayed in place for roughly 18 months, pushing Indian carriers to fly longer paths via Iran or Central Asia.

The detour has allegedly pushed fuel expenses up to 29 percent and added between 30 minutes and three hours to flight durations, affecting about 800 Indian flights each week, including around 640 from Delhi.

In its 2026-27 winter schedule, Air India is also said to be weighing the suspension of Delhi-Copenhagen flights and cutting services to London Gatwick and San Francisco.

The airline said the mix of the Pakistani airspace closure, higher jet fuel prices and a shortage of Boeing 787 aircraft led to its decision to scale back international operations.

A Pakistan Airports Authority spokesperson confirmed the restriction on Indian aircraft will stay in force through November, with a formal NOTAM issued to that effect.