Pakistan’s decision to ban Indian airlines from its airspace has resulted in significant financial losses for Indian carriers, particularly Air India. The airline estimates an annual loss of over 5,029.2 crore due to increased fuel consumption and extended flight times. Flights from New Delhi to the Middle East now take about an hour longer, reducing cargo capacity and increasing fuel costs, which account for roughly 30% of an airline’s operating expenses.
The ban has forced Air India to reroute its flights, adding 15 minutes to several hours to journey times, depending on the destination. Ultra-long-haul flights to North America have resorted to technical halts in European airports for refueling or crew changes, disrupting non-stop schedules. This has not only increased operational costs due to fuel consumption and crew expenses but also disrupted flight schedules and cargo capacity.
The Indian government is exploring solutions to alleviate the aviation sector’s burden, including rerouting flights over alternative routes, securing overflight clearances from Chinese authorities, and providing tax exemptions to mitigate losses. The ban, imposed after a deadly attack on tourists in Pahalgam, Kashmir, is expected to last until at least May 23, 2025, and may lead to similar or greater losses if prolonged.
