Pakistan reported a $14.4 million shortfall in overflight revenue after closing its airspace to Indian aircraft, citing security priorities.
ISLAMABAD: The Pakistan Airports Authority (PAA) has reported a $14.4 million reduction in overflight revenue following the closure of its airspace to Indian-registered aircraft. The measure, in place since April 24, 2025, was introduced after India’s suspension of the Indus Waters Treaty and has affected 100 to 150 daily transit flights.
According to the Ministry of Defence, the decline represents a revenue shortfall rather than a total financial loss, with Notices to Airmen (NOTAMs) issued under federal authority. Officials emphasised that the decision was based on strategic and security considerations, outweighing economic impacts.
The airspace restriction has reduced overall transit traffic by around 20 percent, impacting flights operated by Air India and other carriers. International airlines, including Emirates, Qatar Airways, and British Airways, have also faced longer routes and increased fuel costs as a result of the closure.
The ministry noted that a similar closure in 2019 led to a $26.8 million loss, but current figures reflect higher daily overflight revenue prior to the ban, averaging $760,000. The restriction, which applies to all aircraft operated, owned, or leased by Indian carriers, remains in effect until August 23, 2025.
Both Pakistani and Indian carriers continue to face reciprocal restrictions, affecting connectivity between major regional hubs such as Dubai and Doha. Authorities have advised passengers to monitor airline communications for updates on potential disruptions.
