Pakistan Shuts Airspace. Air India Set To Lose $500M

Tensions between India and Pakistan have reached a critical point following a deadly militant attack in Indian Illegally Occupied Jammu and Kashmir (IIOJK). In response, Pakistan has closed its airspace to all Indian-operated and Indian-registered flights.

The decision, made during a high-level National Security Committee (NSC) meeting in Islamabad, is expected to cost Indian airlines a staggering $500 million per month, according to aviation analysts.

The abrupt closure, effective from April 24 to May 23, has forced major Indian carriers, including Air India, IndiGo, SpiceJet, Akasa Air, and Air India Express, to reroute 200–300 daily flights. This has significantly increased fuel consumption, travel time, and crew costs.

On the first day alone, around 50 flights were either diverted or delayed due to the new restrictions.

The airspace ban applies to all Indian-owned, operated, or leased aircraft, including military flights. It comes as a retaliatory measure to India’s recent actions, including the suspension of the Indus Water Treaty—a move Pakistan condemned as an act of provocation.

Islamabad also halted all bilateral trade and travel arrangements, expelled Indian defence officials, and reduced diplomatic staff.

Tourist Attack Triggers Diplomatic Fallout

The crisis began after an attack in Pahalgam, a tourist hotspot in IIOJK, left 26 civilians dead and 17 injured—the deadliest such incident in the region since 2000. While India blamed Pakistan for “cross-border linkages,” it has yet to produce evidence. Pakistan dismissed the allegations as “baseless, politically motivated, and devoid of rationality.”

India swiftly responded with a series of countermeasures. In turn, Pakistan imposed its own retaliatory steps, including the airspace ban. It also announced the complete suspension of trade and special visa schemes.

Operational Chaos for Indian Airlines

The sudden airspace closure has created significant disruptions for Indian airlines. Long-haul international flights have been forced to take longer detours, adding up to two hours per route.

• Air India’s Toronto-Delhi (AI-190) was diverted to Copenhagen for refuelling.
• AI flights from Paris and London to Delhi had to land in Abu Dhabi for fuel.
• A flight from Sharjah to Amritsar was rerouted via Turbat, avoiding Pakistani airspace.
• One Indian aircraft had to land in Ahmedabad after a fuel shortage while flying through the Gulf of Oman.

In public statements, Air India and IndiGo acknowledged the inconvenience and assured passengers they are working to minimize delays and offer rebooking or refunds.

“The safety of our customers and crew remains our top priority,” Air India said in a post on X.

Aviation Losses and Strategic Risks

Aviation experts say the airspace closure could lead to monthly losses of $500 million for Indian carriers due to increased fuel usage, longer flight paths, and logistical complications. The closure has also added pressure to India’s aviation industry, which is already dealing with high operational costs.

The last time Pakistan shut its airspace to Indian flights, in 2019, after the Pulwama incident. Indian airlines incurred losses of over INR 700 crore.

While both nations are keeping communication minimal, Pakistan’s move to suspend all bilateral arrangements—including trade and water-sharing agreements—signals one of the most serious diplomatic ruptures in recent years between the nuclear-armed neighbours.

The duration of the Pakistan airspace ban remains uncertain. But its impact on aviation, diplomacy, and regional stability is already being deeply felt.