Pakistan airspace closure costs Air India $2.3bn: Report
Pakistan’s continued closure of its airspace in 2025 has reportedly created major challenges for India’s aviation sector. According to international aviation publication FlightGlobal, Air India has linked a significant portion of its annual financial losses to the restrictions, which forced the airline to reroute many international flights.
Air India reports $2.3 billion annual loss
According to FlightGlobal, Air India recorded an annual loss of nearly $2.3 billion for the financial year ending March 31.
The airline said one of the main reasons behind the losses was Pakistan’s airspace closure following the Pakistan-India conflict. The restrictions forced aircraft operating on Western international routes to take longer alternative routes.
Officials said the rerouting significantly increased operational expenses, including fuel consumption, flight time, and overall operating costs.
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Airspace closure increases flight costs
The closure of Pakistan’s airspace has affected flights travelling from India to Europe, North America, and several destinations in the Middle East.
Longer routes require additional fuel, increase travel time, and raise crew and maintenance costs. Aviation experts say these factors have placed additional financial pressure on airlines operating international services.
According to the report, the continued restrictions have made flight planning more difficult and reduced operational efficiency for Indian carriers.
Rising fuel prices add to financial pressure
Air India also attributed part of its financial losses to rising global fuel prices. The airline said higher fuel costs, driven by the US-Iran conflict and broader economic uncertainty, further increased its operating expenses during the financial year.
Combined with the longer flight routes caused by the airspace closure, these factors created additional financial challenges for the airline.
Aviation expert highlights wider impact
Indian aviation expert Subhash Goyal said the continued closure of Pakistan’s airspace has affected between 400 and 500 flights operated by Indian airlines.
He said airlines have faced operational challenges because of longer flight routes, increased fuel consumption, and higher operating costs. Industry observers believe the restrictions have placed additional pressure on India’s aviation sector, which is already dealing with rising costs and changing market conditions.
Aviation sector continues to face challenges
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The report said airlines continue to adjust their schedules and operations to minimise the impact of the restrictions. Experts believe reopening the airspace could help reduce operating costs and improve efficiency for flights operating on Western international routes.
However, until normal flight routes are restored, airlines may continue to face higher expenses and operational challenges.
What it means for passengers
Longer flight routes can increase travel time and operating costs for airlines. While carriers continue to manage these challenges, industry experts say prolonged restrictions may continue to affect airline finances and operational planning.
Passengers are also advised to stay updated on flight schedules, as route adjustments may occasionally result in changes to departure or arrival times.
