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Air India: Pak airspace closure causing $480M hit to airline

India and Pakistan both banned the other's aircrafts from using its airspace in April following the Pahalgam terror attack, that killed 26.

News Arena Network - Islamabad - UPDATED: October 29, 2025, 03:13 PM - 2 min read

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Air India CEO also spoke about the Ahmedabad crash at the event. (File photo)


Air India CEO Campbell Wilson stated that the ongoing closure of Pakistani airspace to Indian carriers has resulted in an estimated loss of ₹4,000 crore for the airline to date, further compounding the operational and financial difficulties faced by the national carrier during a challenging year that has also been impacted by the Ahmedabad air crash.


Wilson explained that the restrictions imposed by Pakistan have compelled Air India to reroute its flights destined for Europe and North America, thereby causing substantial rises in fuel usage, crew expenses, and overall flight turnaround times.


"(Pak) airspace closure is causing an impact of 4000 Cr to Air India," Campbell said at an event.


Both India and Pakistan imposed bans on each other's aircraft from utilising their respective airspaces in the aftermath of the Pahalgam terror attack, which claimed the lives of 26 individuals.


These restrictions apply to both commercial and military aircraft that are either registered in or operated by the two nations. The flight routes linking India with Europe and the United States—among the most profitable international segments for Air India—have suffered the most severe consequences, with average flight durations extending by 60–90 minutes.

 

Also Read: Air India flight from Mumbai to US returns after tech glitch

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