Islamabad 12 August: The prolonged closure of Pakistani airspace is starting to rattle Indian airlines—Air India has announced the suspension of its Washington DC service, effective September 1, as cascading financial pressures mount.
The ongoing closure of Pakistani airspace to Indian carriers, effective since April 24, 2025, is taking a significant toll on India’s aviation sector.
Air India has announced it will suspend its Delhi–Washington DC route from September 1, 2025, due to escalating costs. The ban has forced rerouting over the Arabian Sea and Central Asia, spiking fuel, crew, and delay expenses.
Air India projects a $600 million annual loss if the closure persists, translating to $182.5 million (₹16 billion or PKR 51.8 billion) over 111 days (April 24–August 12).
Meanwhile, Pakistan’s Pakistan Airports Authority (PAA) has lost PKR 6.69 billion (USD 23.6 million) in overflight fees, up from PKR 4.1 billion in the first 68 days, due to 100–150 daily Indian overflights being rerouted. Analysts fear further route cuts if the ban continues, impacting connectivity.
Pakistan is also under pressure. Its aviation authority lost over 40.18 billion PKR in revenue from April to June alone as Indian transit traffic plummeted nearly 20%.
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Industry analysts warn that unless diplomatic channels open soon, more long-haul services could face suspension or consolidation, further eroding connectivity. The ripple effects extend beyond passenger inconvenience—business and tourism sectors stand to bear the brunt.
Statistical Summary (Apr 24 – Aug 12, 111 days)
| Item | Source / Basis | Raw Figure | Calculation | Result (USD) | Result (INR) | Result (PKR) |
|---|---|---|---|---|---|---|
| Air India 12-month loss estimate | Airline disclosure | USD 600m/year | (111 ÷ 365) × 600m | 182,465,753 | ₹16,000,422,000 | PKR 51,820,274,000 |
| Pakistan overflight revenue loss | PAA data (Apr 24–Jun 30) | PKR 4.1bn / 68 days | Daily loss × 111 days | 23,565,659 | ₹2,067,341,000 | PKR 6,692,647,000 |
| Implied normal overflight revenue (if open) | PAA avg daily USD 760k | — | 760,000 × 111 | 84,360,000 | ₹7,397,058,000 | PKR 23,969,040,000 |
| Indian airlines total extra cost | PTI industry estimate | ₹306 crore/month | 3.7 months × 3.06bn | 129,104,900 | ₹11,322,000,000 | PKR 36,638,791,000 |
