India’s Airlines suffer major losses as Pakistan holds line on airspace ban

Pakistan’s continued closure of its airspace is creating major challenges for Indian airlines, especially Air India, which has reportedly lost over ₹8.2 billion due to the ongoing tensions following the Pahalgam incident and rising military conflict between the two nations.

According to leaked sources, Air India CEO Campbell Wilson wrote a confidential letter to the Indian government. In it, he explained that the airspace restriction is causing the airline to lose around ₹200 million daily. The losses are mainly due to longer flight routes, higher fuel costs, and added airport fees in alternative countries used for takeoffs and landings.

The ban on Indian flights using Pakistan’s airspace began on April 23, 2025, after a series of cross-border hostilities. As of this week, the closure has entered its 40th day, and officials say it will remain in effect until at least June 24 — possibly longer if tensions do not ease.

Sources from Pakistan’s Civil Aviation Authority (CAA) revealed that over 100 Indian international flights — many bound for Europe, North America, and Latin America — now face detours of two to three and a half hours. These longer routes are hitting the carriers hard.

The combined loss to Indian airlines is estimated at ₹300 million to ₹400 million per day. While Air India is the most affected, IndiGo, Vistara, and SpiceJet are also suffering increased fuel and route costs.

Air India’s top management is reportedly urging New Delhi to solve the issue through diplomatic channels. Airline executives fear that the situation could soon deal an unbearable blow to their international operations and revenue.

On the other side, Pakistani authorities have signaled that the airspace ban is a direct response to Indian military strikes across the Line of Control (LoC) — including attacks on civilian areas in Azad Jammu & Kashmir, which led to several deaths.

Passengers from India are also feeling the pressure. Many flights now take much longer, causing delays, missed connections, and higher ticket prices. Frustrated travelers are voicing their complaints on social media and to airline customer services.

Meanwhile, Pakistan continues to use the airspace restriction as a strategic tool in its diplomatic response to what it describes as “Indian aerial aggression.” With no signs of peace talks, the situation is expected to worsen before it improves — possibly pushing both governments to seek a resolution, or escalate tensions further in other areas.