Air India Faces $600 Million Loss Over Pakistan Airspace Ban

Air India may incur a $600 million loss over a year due to Pakistan’s ongoing airspace ban, forcing longer routes and higher operational costs. The airline is seeking government and diplomatic support to mitigate the financial impact.

Ketaan Ram Kataria

Patna: Tata-owned Air India could suffer a financial blow of nearly $600 million over a 12-month period due to a Pakistani airspace ban, the airline told the Indian government, according to a media reports.

The carrier is reportedly in talks with Indian authorities to seek financial and diplomatic support to mitigate the impact.

The ban, in place since April 1, 2024, restricts Indian airlines from flying over Pakistani airspace, forcing longer routes to destinations in Europe, the US, and Canada. As a result, Air India flights are experiencing increased fuel costs, longer flight durations, and higher crew expenses.

“The closure of Pakistan’s airspace has significantly impacted our operations, leading to longer routes, higher costs, and an estimated $600 million loss over 12 months. We are seeking government support to address the issue.”Air India said.

Pakistan had initially denied overflight rights to Air India’s flights from Birmingham and London in response to Indian airstrikes in Pakistan-administered territory. The situation has escalated into a broader aviation standoff, affecting both passenger convenience and airline economics.

The prolonged closure not only disrupts schedules but also weakens the competitiveness of Indian carriers against global rivals. With the summer travel season underway, swift diplomatic engagement is being seen as crucial to prevent deeper financial damage.