In a move that is backfiring economically, Pakistan’s decision to close its airspace to Indian flights following recent cross-border tensions is now costing the country millions of dollars in lost aviation revenue.
Sources within Pakistan’s Civil Aviation Authority (CAA) confirm that the ban, introduced after the deadly Pahalgam terror attack, is causing significant disruption to regional and international flight operations. What was intended as a retaliatory measure is now creating self-inflicted damage to Pakistan’s fragile economy.
Adding to the blow, many Western airlines are voluntarily avoiding Pakistani airspace altogether, rerouting flights through longer paths to bypass the region. Airlines are reportedly choosing routes through Central Asia or the Arabian Peninsula, adding time and fuel costs to their operations—but eliminating Pakistan’s revenue from lucrative overflight charges.
Historically, Pakistan has collected overflight fees from every aircraft using its airspace—reportedly around $580 per flight for a Boeing 737. With more than 400 flights per day previously traversing Pakistan’s skies, estimates suggest a potential daily loss of over $200,000. When combined with losses from terminal navigation fees, landing, and parking charges, the financial damage could reach as high as $300,000 per day—translating to millions over the coming weeks.
Aviation analyst Asad Rahim said, “The move was politically symbolic, but from an economic and aviation perspective, it’s unsustainable. The world’s airlines have options, and Pakistan isn’t essential to their routes anymore.”
The development comes as Pakistan battles economic headwinds, with inflation surging, IMF loans under scrutiny, and foreign reserves dwindling. The lost aviation income only adds to the country’s economic distress.
Meanwhile, India has so far not responded in kind with any formal airspace bans but has lobbied global agencies to review Pakistan’s financial support and counterterrorism commitments.
International observers have urged de-escalation, citing concerns that the rising diplomatic hostility between India and Pakistan could disrupt broader regional stability, trade, and air travel.
If Pakistan’s airspace remains closed in the long term, the country stands to lose not only vital aviation revenue but also its standing as a key regional air corridor—potentially forcing a long-term realignment in global aviation maps.
