Pakistan loses ₹127 crore after airspace ban on Indian flights; India remains unaffected

Pakistan's airspace ban on India backfires economically

Pakistan has reportedly lost nearly Rs 127 crore in over two months after the closure of its airspace to Indian-registered aircrafts following the suspension of the Indus Waters treaty after the April 22 Pahalgam terror attack.

According to a statement from Pakistan’s Ministry of Defence to the National Assembly, the Pakistan Airports Authority (PAA) incurred losses exceeding Rs 1,240 crore (PKR 4.1 billion) in a little over two months. As reported by Dawn, the ministry revealed that the loss in overflying revenue occurred between April 24 and June 30.

The ministry, while acknowledging the drop in earnings, clarified that the figures submitted to the National Assembly represented “revenue shortfalls, not overall financial losses.” It emphasized that overflight and aeronautical charges had remained unchanged during this period.

"While financial losses occur, sovereignty and national defence take precedence over economic considerations," the ministry said in a statement, as reported by Dawn.

The report also noted a sharp decline in the Pakistan Airports Authority’s (PAA) revenue from overflying charges between April 24 and June 30, primarily due to the closure of airspace to Indian-registered aircrafts. This move impacted around 100 to 150 Indian flights per day, reducing Pakistan’s overall transit air traffic by nearly 20%.

Financially, the decision has proven more burdensome than during earlier standoffs. The PAA's average daily revenue from overflights, which stood at $508,000 in 2019, increased to $760,000 by 2025, making the current losses significantly greater than in previous airspace closures.

Pakistan shut its airspace to Indian airlines on April 24 after India suspended the 1960 Indus Waters Treaty, a move aimed at asserting its strategic and sovereign interests. Despite Pakistan's threat to treat it as an “act of war,” India has maintained its stance firmly.

Since the closure, Indian aircrafts have been unaffected on other international routes, while Pakistan has suffered a nearly 20% drop in transit air traffic, according to Dawn.

India has also extended its airspace restrictions on Pakistani carriers until August 23, 2025, reinforcing its policy of reciprocity. Meanwhile, Indian aviation operations continue smoothly, highlighting resilience and effective route management.