Pakistan Airspace Closure Costs India Millions in Revenue

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Pakistan’s recent decision to keep its airspace closed to Indian aircraft has caused significant disruption in regional air travel, impacting between 100 and 150 Indian flights per day and reducing overall traffic by about 20 percent, according to a written statement submitted by the Ministry of Defence to the National Assembly.

Figures from the Pakistan Airports Authority (PAA) reveal that the restriction on Indian-registered airlines between April 24 and June 30, 2025, resulted in a loss of approximately Rs4.1 billion in overflight revenue. The closure was implemented following escalating tensions between Pakistan and India after the April 22 attack on tourists in Indian Occupied Kashmir.

The situation intensified on May 7 when India launched missile strikes inside Pakistan, prompting a swift military response. Pakistan carried out its strikes across the border until May 10, after which hostilities subsided. The airspace, however, remains closed to Indian carriers, and Pakistani airlines are likewise barred from entering Indian airspace.

This is not the first time such measures have been taken. In 2019, after the Pulwama attack in occupied Kashmir, Pakistan’s airspace closure caused an estimated Rs7.6 billion loss in overflight revenue for the then Civil Aviation Authority (CAA). Despite these financial setbacks, Pakistani authorities stress that safeguarding national sovereignty outweighs economic considerations.

Before the 2019 tensions, Pakistan’s daily overflight revenue averaged $508,000. While the current restrictions have temporarily reduced these earnings, the PAA has managed to maintain operational resilience. Officials maintain that defending the country’s airspace and territorial integrity remains the foremost priority, regardless of the financial impact.

The Ministry of Defence emphasized that security and sovereignty come before commercial interests, reaffirming the government’s commitment to protecting the homeland at all costs. The airspace will remain open to all international airlines except those registered in India, a stance that reflects Islamabad’s firm position in the wake of recent hostilities.

As regional aviation continues to adjust to the new routes and schedules, the closure underscores the ongoing strategic importance of Pakistan’s airspace in South Asia. The decision serves as both a security measure and a diplomatic signal, reinforcing the country’s resolve in the face of cross-border aggression.