Pakistan says India overflight ban cost ₹1,240 crore in just over 2 months

According to Pakistan's Defence ministry, the PAA's revenue shortfall from April 24-June 30 was PKR 4.1 billion after barring Indian aircraft

Pakistan’s Ministry of Defence reportedly told the National Assembly that the Pakistan Airports Authority (PAA) lost PKR 4.1 billion (₹1,240 crore) in a little over two months after closing its airspace to Indian-registered aircraft. The shortfall, from April 24 to June 30, is in overflying revenue and below earlier reports of PKR 8.5 billion, according to a report by Dawn.

 

Why the airspace was closed?

 

The airspace closure followed India’s suspension of the Indus Waters Treaty in April this year. India's action came after the April 22 Pahalgam terror attack, in which 26 civilians were killed by Pakistan-based terrorists in Jammu and Kashmir.

 

 

From April 24, Pakistan withdrew overflight permission for all Indian-registered aircraft and those operated, owned, or leased by Indian carriers. 

 

Why it matters

 

The measure reportedly affected at least 100–150 Indian aircraft daily, cutting transit traffic by almost 20 per cent. While acknowledging financial losses, the ministry said “sovereignty and national defence take precedence over economic considerations". It also clarified the figures reflect revenue shortfalls, not overall financial losses, and that overflight and aeronautical charges remain unchanged. 

The losses are not limited to Pakistan's aviation sector. Indian carriers such as Air India, IndiGo, SpiceJet, and Akasa Air have faced significant operational challenges due to the flight restrictions imposed following tensions in April–May 2025.

 

According to a Reuters report, Air India estimates that sustained restrictions could cost it around USD 600 million annually, and has sought government compensation.

 

Pakistan’s restriction targets Indian airlines and aircraft through the last week of August after the ban was extended twice on a monthly basis. Pakistani carriers remain banned from Indian airspace.

 

Separately, Islamabad International Airport’s airspace will be closed daily for two hours until August 14 under NOTAM A0510/25. Departures and arrivals will be halted from ground level to FL210 between 11 am and 1 pm, affecting flights to Lahore and northern areas.