Pakistan loses $14.4 million revenue due to airspace ban
Pakistan’s ongoing airspace restriction on Indian-registered
aircraft has led to a $14.4 million drop in overflight revenue, according to
figures released by the Ministry of Defence. The ban, initiated on April 24 in
response to India’s suspension of the Indus Waters Treaty, has been extended
twice and is now expected to remain in effect until the last week of August.
Between April 24 and June 30, the closure affected between
100 and 150 flights daily—primarily those operated by Indian carriers,
including Air India—across Pakistan’s airspace and through Islamabad
International Airport (ISB). The Pakistan Airports Authority (PAA) reported a
20% reduction in transit traffic, significantly lowering revenue projections
compared to pre-ban estimates.
The Ministry clarified that the $14.4 million figure
reflects lost revenue—not total economic loss—stemming from the reduced air
traffic. The airspace restrictions were implemented through official Notices to
Airmen (NOTAMs), issued under federal authority, and framed as part of a
broader strategic and security posture. No changes were made to overflight or
aeronautical fees, and the government has not introduced tariff hikes or
bailout measures in response.
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This marks the second major airspace closure in recent
years. A similar ban in 2019 led to a $26.8 million loss, although early
estimates had suggested it could cost as much as $100 million. In 2025,
Pakistan’s average daily overflight revenue prior to the ban was $760,000—up
significantly from $508,000 in 2019.
The current ban covers all aircraft operated, owned, or
leased by Indian airlines. In turn, Indian authorities have upheld reciprocal
restrictions on Pakistani carriers.
Temporary closure at Islamabad Airport
In a separate development, Islamabad International Airport’s
airspace will remain closed daily from 11:00 AM to 1:00 PM until August 14 due
to operational reasons, as per NOTAM A0510/25. The closure affects flights to
and from Lahore (LHE) and northern areas up to flight level FL210.
On the first day of the temporary restriction, 12
international flights were delayed, affecting around 2,847 passengers. Despite
the disruptions, the Federal Investigation Agency (FIA) reported that all
immigration counters remained fully staffed to ensure smooth passenger
processing and compliance with anti-human trafficking protocols.
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Impact on international carriers
The airspace closure continues to affect not only Indian
airlines but also major international carriers such as Emirates, Qatar Airways,
and British Airways, which are forced to reroute flights—leading to longer
travel times and increased fuel consumption.
The extension of the ban until August 23, 2025, has further
complicated regional connectivity, particularly to key hubs like Dubai
International (DXB) and Doha Hamad International (DOH). Pakistani airlines,
including Pakistan International Airlines (PIA), also face reciprocal
limitations in Indian airspace, constraining travel options across the region.
Both the Pakistan Airports Authority and Civil Aviation
Authority have advised travelers to stay informed through airline updates,
given the ongoing possibility of further disruptions.
Despite the financial toll, officials emphasized that
national security remains the overriding priority. The current restrictions
reflect Pakistan’s broader strategic response to rising regional tensions,
underscoring the balance between sovereignty, diplomacy, and economic
resilience.
Source: aviationa2z.com