Mumbai, August 9: Pakistan has incurred a revenue shortfall of INR 4.1 billion due to the closure of its airspace to Indian-registered aircraft between April 24 and June 30, according to a statement presented by the Ministry of Defence in the National Assembly.

According to a report by the Dawn, the ministry confirmed that the Pakistan Airports Authority (PAA) suffered this loss in overflying charges, not total revenue, as a result of the diplomatic escalation between the two neighbours. The airspace restriction came a day after India unilaterally suspended the Indus Waters Treaty on April 23, following the Pahalgam terror attack that claimed 26 civilian lives. The Pakistan-based group The Resistance Front (TRF), an offshoot of Lashkar-e-Taiba, claimed responsibility. India-Pakistan Tension: All Airlines and Airports Reportedly Instructed To Enhance Security Measures, Passengers To Undergo Secondary Ladder Point Check; Visitor Entry to Terminal Buildings Banned.

Pakistan Suffers INR 4.1 Billion Loss After Airspace Closure to India

The PAA’s move to block Indian overflights affected 100–150 Indian aircraft daily, leading to an estimated 20% drop in total air traffic.

Pakistan Closes Airspace to India

Pakistan’s airspace ban was initially implemented on April 24 and has since been extended monthly, currently set to remain in effect until August 24. In a reciprocal move, India has also extended its ban on Pakistani aircraft from entering its domestic airspace until August 23, as confirmed by India’s Minister of State for Civil Aviation, Murlidhar Mohol. Indian Airports Put on High Alert: BCAS Issues Advisory, Directing Enhanced Security Measures at Airports Due to Potential Terror Threat Between September 22-October 02.

Before launching Operation Sindoor on May 7, India undertook a series of punitive actions against Pakistan, including the suspension of the water treaty, downgrading diplomatic ties, and imposing a full trade ban, affecting both direct and indirect imports/exports. In retaliation, Pakistan halted overflight permissions for Indian aircraft and those operated, owned, or leased by Indian carriers.

The Defence Ministry also drew comparisons with a similar closure in 2019, when tensions led to a revenue loss of IND 7.6 billion (approximately USD 54 million), notably lower than the initially claimed USD 100 million. In contrast, the 2025 shortfall is also less than earlier speculative figures of INR 8.5 billion.

Despite the losses, the ministry noted that overflight and aeronautical charges have remained unchanged, highlighting that no tariff hikes or bailouts were required. In fact, daily overflight revenue has grown over time, from an average of USD 508,000 in 2019 to USD 760,000 in 2025, showcasing an increase in air traffic volumes before the restrictions.

As of now, Pakistan's airspace remains open to all international carriers except Indian airlines, and vice versa. The mutual restrictions continue to reflect the strategic standoff between the two nuclear-armed neighbours amid ongoing diplomatic and military tensions.

(The above story first appeared on LatestLY on Aug 09, 2025 06:07 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).