Pakistan Airports Authority Reports Rs 4 Billion Loss After Closing Airspace to India
The Pakistan Airports Authority (PAA) suffered a financial loss of Rs 4.10 billion following the closure of its airspace to Indian flights from April 24 to June 20, 2025, according to reports.
This airspace shutdown disrupted between 100 to 150 Indian flights daily, causing a significant 20% decline in Pakistan’s overall air traffic and a reduction in revenue from overflying fees, as reported by Dawn. The figures were shared by the Pakistani Defence Ministry during a presentation to the National Assembly.
Federal Defence Minister Khawaja Mohammad Asif clarified that the revenue loss related to overflight charges during the period was Rs 4.10 billion, lower than an earlier estimate of Rs 8.5 billion. The airspace closure was in response to India’s suspension of the Indus Waters Treaty on April 23, which was part of escalating diplomatic tensions following the Pahalgam terror attack.
Officials confirmed that Pakistan extended its ban on Indian aircraft using its airspace by one month, now set until August 24, 2025. In response, India also prolonged its ban on Pakistani aircraft entering Indian airspace until August 23, as confirmed by Union Minister of State for Civil Aviation, Murlidhar Mohol. The extension was justified by ongoing security concerns and strategic considerations.
The Pahalgam terror attack, which took the lives of 26 civilians, was claimed by The Resistance Front (TRF), an offshoot of the Pakistan-based terror group Lashkar-e-Taiba.
Before launching Operation Sindoor on May 7, India implemented several punitive measures against Pakistan, including downgrading diplomatic relations, suspending the Indus Waters Treaty, and imposing a total ban on trade with Pakistan. Pakistan’s subsequent closure of its airspace to Indian flights has now reportedly caused significant financial losses to its government.
