Pakistan suffers $14.39 million loss after closing airspace to Indian carriers: Report

Pakistan has reportedly incurred financial losses amounting to Pakistani Rs 4.10 billion (14.3 million) following its decision to close its airspace to Indian aircraft between April 24 and June 30, 2025. The figures, attributed to the Pakistan Airports Authority (PAA), were disclosed in a report by Dawn, citing information presented by the Ministry of Defence to the National Assembly.Soon after Indian armed forces destroyed terrorist camps in Pakistan following the April 22 Pahalgam terror attach, Pakistan closed its airspace to Indian carrier. The temporary airspace ban, which disrupted cross-border aviation, resulted in the diversion of around 100 to 150 Indian flights per day. This led to a 20% reduction in overall air traffic and a sharp fall in revenue from overflight charges — a key source of income for PAA.

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Federal Defence Minister Khawaja Mohammad Asif confirmed the revenue losses while addressing the National Assembly, Dawn reported. “The revenue shortfall from April 24 to June 30 was related to overflying charges,” he stated, clarifying that the actual loss was lower than earlier estimates, which had suggested a figure as high as Rs 8.5 billion.The closure of airspace was implemented in response to India’s suspension of the Indus Waters Treaty on April 23, which escalated diplomatic tensions between the two nations.

The Pahalgam attack wherein 26 civilians were killed, was claimed by The Resistance Front TRF an offshoot of Pakistan-based terrorist group Lashkar-e-Taiba. India subsequently launched a wide range of retaliatory measures, including the commencement of Operation Sindoor on May 7.

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Moreover, India imposed sweeping sanctions on Pakistan, including a downgrade in diplomatic ties, a total suspension of direct and indirect trade, and a halt to the Indus Waters Treaty.

In retaliation, Pakistan initially shut down its airspace for Indian carriers in late April, and has since extended the ban until August 24.