Pakistan Blocks Indian Flights, Ends Up Boarding A ₹1,240 Crore Loss In Two Months, Says Report

(MENAFN- Live Mint) Pakistan has incurred heavy financial losses after closing its airspace to Indian-registered aircraft, with the Pakistan Airports Authority (PAA) losing more than ₹1,240 crore (PKR 4.1 billion) in just over two months, the Ministry of Defence informed the National Assembly on Friday, as reported by Dawn.

The airspace ban, which began on April 24, was introduced in response to India's suspension of the Indus Waters Treaty on April 23. It blocked overflight access to all aircraft registered in India or operated, owned, or leased by Indian carriers, according to Dawn.

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The move, however, backfired economically. The PAA's revenue from overflying charges plunged between April 24 and June 30, nearly affecting 100-150 Indian aircraft daily and slashing Pakistan's transit air traffic by almost 20 per cent, as per Dawn.

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The Pakistani defence ministry admitted the financial setback but tried to justify it by saying, "Sovereignty and national defence take precedence over economic considerations." Officials also claimed such measures were issued via Notices to Airmen (NOTAMs) for "strategic and diplomatic" reasons.

According to the ministry's own data, PAA's average daily overflight revenue in 2019 was $508,000, compared to $760,000 in 2025, meaning the ban is costing Pakistan far more now than during the previous standoff, Dawn reported.

Currently, Pakistan's airspace remains open to all except Indian airlines and aircraft, with the ban extended twice and now set to last until the last week of August.

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Indian carriers continue unaffected on other international routes, while Pakistani airlines are still barred from entering Indian airspace.

The airspace standoff began after the April 22 Pakistan-sponsored terror attack in Pahalgam, Jammu & Kashmir, which killed 26 people. In response, India banned all Pakistani-operated, owned or leased aircraft, including military flights, from entering Indian skies from April 30.

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Minister of State for Civil Aviation Murlidhar Mohol said the NOTAM restricting Pakistani aircraft from entering Indian airspace has been extended till August 23, 2025, citing "prevailing security protocols and strategic considerations."

(With inputs from ANI)

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