Millions in Turbulence Costs: Pakistans Action Disrupts Indian Flights by Rs 307 crores

April 30, 2025
Millions in Turbulence Costs: Pakistans Action Disrupts Indian Flights by Rs 307 crores
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Summary

The closure of Pakistani airspace to Indian airlines in April 2025 marked a significant escalation in the longstanding tensions between the two nuclear-armed neighbors following a deadly terrorist attack in Pahalgam, Indian-administered Jammu and Kashmir, which claimed the lives of 26 tourists. India accused Pakistani-based militants of orchestrating the attack, a claim Pakistan denied while calling for a neutral investigation. In retaliation, Pakistan suspended visas for Indian nationals, expelled Indian diplomats, cut off trade, and closed its airspace to Indian aircraft, severely disrupting civilian and military aviation between the countries.
This airspace closure forced Indian carriers—including Air India, IndiGo, and SpiceJet—to reroute flights bound for Central Asia, Europe, the United Kingdom, North America, and the Middle East along longer and more fuel-intensive paths, leading to increased flight durations, operational complexities, and significantly higher costs. Airlines reported that these additional expenses could reach upwards of ₹307 crore monthly, with inevitable fare increases of 8–12% anticipated for passengers. The disruption also forced some route suspensions and reduced cargo capacities due to payload restrictions arising from the need to carry extra fuel.
This incident echoes a similar airspace closure in 2019 following the Balakot airstrikes, which resulted in Indian carriers suffering losses estimated at ₹700 crore due to extended flight routes and increased fuel consumption. The ongoing closure reflects the persistent vulnerability of civil aviation in the region to geopolitical conflict, highlighting the far-reaching economic impact of diplomatic escalations between India and Pakistan.
Despite the severe operational and economic consequences, diplomatic efforts and government responses have continued amid heightened military activity near the Line of Control. Both countries remain locked in retaliatory measures, with the closure illustrating the broader pattern of tit-for-tat actions that exacerbate regional instability. International calls for restraint have accompanied the crisis, but prospects for a swift resolution remain uncertain.

Background

The closure of Pakistani airspace to Indian airlines occurred amid escalating tensions between the two nuclear-armed neighbors following a deadly attack in Pahalgam, a scenic town in the northwestern Indian-administered state of Jammu and Kashmir. The attack resulted in the killing of 26 tourists, which India attributed to Pakistani militants, a claim Pakistan has denied while calling for a “neutral” investigation into the incident. This incident triggered a series of tit-for-tat diplomatic and operational retaliations, including Pakistan’s decision to restrict Indian flights from using its airspace.
As a consequence, Indian carriers have been forced to reroute flights on longer paths to avoid Pakistani airspace, significantly impacting operational efficiency and costs. Flights bound for Central Asia, the Caucasus, West Asia, Europe, the United Kingdom, and North America are among those affected. Airlines such as Air India and Indigo have publicly acknowledged these disruptions. Air India announced that some flights to and from North America, Europe, the Middle East, and the UK now follow alternative extended routes, expressing regret for the inconvenience caused by the unforeseen airspace closure beyond their control. Indigo indicated that approximately 50 routes may be impacted, with flights to destinations like Almaty, Kazakhstan, and Tashkent, Uzbekistan temporarily suspended.
These changes have led to longer flight durations and increased fuel consumption, which industry insiders expect to result in higher operational costs for Indian airlines. These additional expenses are likely to be passed on to passengers in the form of higher airfares. The situation reflects a broader disruption of air connectivity between India and multiple international destinations, exacerbated by the geopolitical fallout from the Pahalgam attack and subsequent diplomatic fallout.

Incident Description

The disruption began following a retaliatory response by Pakistan to the Pahalgam terror attack in Indian-administered Jammu and Kashmir, where 26 tourists were killed. In response, Pakistan suspended visas issued to Indian nationals, expelled Indian diplomats, closed its airspace to Indian aircraft, and cut off all trade with India on 24 April 2025. Additionally, Pakistan put on hold all bilateral agreements, including the Simla Agreement, shut down the Wagah border, and suspended SAARC visas for Indian nationals. These actions significantly escalated tensions between the two nuclear-armed neighbors.
The closure of Pakistani airspace severely impacted Indian airlines, forcing carriers such as Air India, IndiGo, and SpiceJet to reroute flights to Europe, North America, the UK, and the Middle East over longer paths. These detours resulted in extended flight times, increased fuel consumption, and higher operational costs. For example, IndiGo announced adjustments on around 50 international routes, suspending flights to Almaty and Tashkent temporarily due to the unviability of rerouted flights for its current fleet.
This disruption mirrored a similar airspace closure in 2019 following the Balakot airstrikes, when Indian carriers incurred losses amounting to approximately ₹700 crore (about $100 million) due to higher fuel expenses and operational challenges caused by longer flight routes. Industry insiders expect comparable financial losses this time, with daily additional costs running into crores of rupees. These increased costs are likely to be passed on to consumers through higher airfares.
The Indian Express noted that the closure affected flights departing from Delhi to Central Asia, the Caucasus, West Asia, Europe, the UK, and North America. Flights from cities including Delhi, Amritsar, Jaipur, Lucknow, and Varanasi faced direct impacts due to the unavailability of Pakistani airspace, leaving airlines with fewer and longer route options. The resulting operational strain, coupled with crew duty time limits and payload challenges, compounded the disruption for Indian carriers.

Economic Impact

The closure of Pakistani airspace has had a significant economic impact on Indian airlines, primarily due to longer flight routes, increased fuel consumption, and operational challenges. Indian carriers such as Air India (AI), IndiGo (6E), and SpiceJet (SG) have been forced to reroute flights destined for Europe, North America, the UK, and the Middle East, resulting in extended flight durations and higher operational costs. This disruption mirrors a similar closure in 2019, which led to Indian carriers incurring losses exceeding ₹540 crore over a five-month period.
The immediate financial impact of the current closure is substantial. Indian airlines are reportedly facing additional weekly operational expenses of approximately ₹77 crore, with monthly costs potentially surpassing ₹307 crore due to increased fuel burn and extended flight times. Long-haul flights using wide-body aircraft to Europe and North America are major contributors to these increased expenses, accounting for roughly ₹217 crore of the monthly additional costs. Moreover, airlines are encountering further complexities related to crew duty time limitations, reduced aircraft availability, and payload restrictions caused by the need to carry extra fuel, which in turn reduces cargo capacity.
For passengers, these operational disruptions are expected to translate into longer flight durations, potential cancellations, and an increase in airfares by an estimated 8–12%, with prices likely to rise further if the closure persists. Flights originating from northern Indian cities such as Delhi, Amritsar, Jaipur, Lucknow, and Varanasi have been particularly affected, with some US and European flights experiencing an increase in duration by 2 to 2.5 hours due to rerouted paths over the Arabian Sea. For example, Air India’s flights to the Middle East from New Delhi are now approximately one hour longer, reducing available cargo space and increasing fuel consumption.
The economic consequences are not limited to Indian carriers. Pakistan International Airlines (PIA) and the Pakistan Civil Aviation Authority (CAA) have also suffered losses estimated at nearly $460,000 and $300,000 per day, respectively, culminating in a total loss of close to $100 million during the previous closure period in 2019. With the fresh airspace closure following the Pahalgam terror attack, Pakistan is likely to face similar financial setbacks once again.

Diplomatic and Governmental Responses

The closure of Pakistani airspace to Indian aircraft on 24 April 2025 marked a significant escalation in tensions between the two nuclear-armed neighbors following the Pahalgam terror attack in Indian-administered Kashmir. Pakistan implemented a series of retaliatory measures including the suspension of visas for Indian nationals, expulsion of Indian diplomats, and the closure of the Attari–Wagah border crossing. Additionally, Pakistan suspended the Simla Agreement and cut off all trade with India while keeping the Kartarpur Corridor open for Sikh pilgrims.
In response, the Indian government initiated reciprocal actions by expelling Pakistani diplomats, suspending visas for Pakistani nationals, closing borders, and suspending the Indus Waters Treaty of 1960. India also urged its citizens to avoid travel to Pakistan and called for those currently in the country to return at the earliest opportunity. Prime Minister Narendra Modi convened meetings with key defense and security officials, including Defense Minister Rajnath Singh and National Security Advisor Ajit Doval, to coordinate India’s response amid increasing military activity near the Line of Control (LOC).
The airspace closure, which was announced to remain in effect until midnight on 25 May 2025, affects all Indian military and civilian aircraft and has forced major Indian carriers such as Air India, IndiGo, and SpiceJet to reroute flights to Europe, North America, the UK, and the Middle East. This has led to longer flight times, increased fuel consumption, and operational complexities such as crew scheduling and payload restrictions. Despite the financial impact on Indian carriers potentially running into hundreds of crores of rupees, Indian government officials have so far stopped short of offering direct financial assistance to airlines.
Internationally, the United Nations urged both India and Pakistan to exercise maximum restraint and resolve their disputes through diplomatic means. Pakistan has denied involvement in the terror attack but has called for a neutral investigation. The escalation has also caused a drop in Pakistan’s dollar-denominated government bonds, reflecting broader economic concerns amid the diplomatic crisis.
Within India, government ministers have engaged directly with airline operators to assess the impact and explore alternative routes to mitigate passenger inconvenience. Options for longer-term solutions are being considered should the airspace closure persist beyond a few months. Meanwhile, Indian aviation experts note that while passenger airfares may not rise sharply in the short term, operational costs for Indian airlines will increase substantially due to extended routes and additional fuel consumption.
Pakistan’s decision to close its airspace and implement multiple diplomatic restrictions is widely seen as part of a broader strategy of tit-for-tat measures aimed at pressuring India following the Pahalgam attack. Both countries remain locked in a cycle of escalating retaliations, with Kashmir continuing to be a focal point of conflict and diplomatic tension.

Adaptations and Safety Measures

In response to the closure of Pakistani airspace, Indian carriers such as IndiGo (6E) and Air India (AI) have implemented various adaptations to minimize operational disruptions and prioritize passenger safety. These airlines have devised alternative flight routes to bypass Pakistani airspace, primarily rerouting flights destined for Europe and the United States via longer paths over the Arabian Sea from Mumbai and Delhi, or through Muscat and Doha before entering Chinese airspace. These detours, while necessary, have significantly increased flight durations and operating costs, compelling airlines to adjust schedules and manage fuel consumption more carefully.
To address the resulting operational challenges, airlines have engaged in internal meetings and collaborated with the Indian government to assess the full impact and develop effective solutions for passengers and carriers alike. The Civil Aviation Minister, K Ram Mohan Naidu, has emphasized ongoing efforts to balance passenger convenience with safety amid these extended flight times. Indian carriers are also grappling with issues beyond increased fuel costs, including crew duty time restrictions, limited aircraft availability, and payload adjustments to maintain compliance with safety regulations.
The Directorate General of Civil Aviation (DGCA) has issued directives to airlines to ensure passenger comfort and proper handling during longer journeys caused by the rerouted flights. In light of these challenges, IndiGo announced adjustments to approximately 50 international routes and temporarily suspended services to certain Central Asian destinations, such as Almaty and Tashkent, where rerouting rendered operations unviable for the current fleet. Other carriers like Air India, Air India Express, SpiceJet, and Akasa Air continue to monitor the situation closely, balancing operational strain with safety priorities.
Flight crews have also had to adapt to the new circumstances, maintaining heightened vigilance in complex weather and air traffic conditions. An incident review highlighted how crew focus and response to safety alerts, such as the Terrain Awareness and Warning System (TAWS), are critical during challenging approaches affected by adverse weather. Such safety measures and crew preparedness remain paramount as airlines navigate the evolving geopolitical and operational landscape.

Diplomatic Efforts and Conflict Resolution

Following the escalation of tensions between India and Pakistan in April 2025, multiple diplomatic efforts were initiated amid retaliatory measures taken by both sides. On April 24, Pakistan suspended visas issued to Indian nationals, closed its airspace to Indian aircraft, expelled Indian diplomats, and instructed Indian military advisers to leave by April 30. It also cut off all trade with India and suspended the Simla Agreement, which had long governed bilateral relations. Despite these actions, the Kartarpur Corridor remained open to Sikh pilgrims, signaling a limited attempt to maintain some humanitarian ties. Concurrently, the Attari–Wagah border ceremony was scaled down, with the traditional symbolic handshake being canceled, reflecting the strained atmosphere.
India responded by downgrading diplomatic ties and suspending a 1960 treaty related to the sharing of waters from the Indus River, while closing the only land crossing between the two countries. New Delhi asserted that cross-border elements were involved in the attack that triggered the crisis, linking the violence to Pakistani militants—a claim Pakistan denied, instead calling for a neutral investigation.
In the midst of these developments, both nations’ air forces conducted increased activity near the Line of Control, further exacerbating tensions. Diplomatic discourse continued, with India emphasizing efforts to minimize the impact on civilians and commercial interests. Senior Indian officials engaged with airlines to explore alternative flight routes, aiming to reduce disruptions caused by Pakistan’s airspace closure. Options for rerouting were discussed extensively to alleviate adverse effects on passengers, underscoring the government’s priority to maintain connectivity despite the ongoing conflict.
President Donald Trump later downplayed the severity of the crisis, referring to the historic nature of India-Pakistan conflicts spanning over 1,500 years, despite the Kashmir dispute originating in 1947. Meanwhile, protests erupted outside the Pakistan High Commission in London, led by members of the Indian diaspora, reflecting international attention and public sentiment surrounding the conflict.
Despite the heightened tensions, certain efforts to preserve limited engagement and avenues for dialogue persisted, illustrating the complexity of diplomatic relations between the two nuclear-armed neighbors amid recurring hostilities.

Related Incidents and Comparisons

The closure of Pakistani airspace has historically had significant repercussions for Indian aviation, with notable parallels observed in previous instances. A major example occurred in 2019 following the Balakot airstrikes by the Indian Air Force, which prompted Pakistan to fully close its airspace from February 26 until July of the same year. During this period, Indian airlines faced substantial operational challenges, including increased fuel costs and the need to adopt longer detour routes. These complications resulted in cumulative losses estimated at around Rs 700 crore, severely impacting carriers’ profitability and flight schedules.
Similar to the 2019 closure, the recent Pakistani airspace restrictions have forced Indian airlines such as Air India and IndiGo to reroute international flights bound for North America, the UK, Europe, and the Middle East. These rerouted flights now take longer paths, often involving technical halts at European airports for refueling or crew changes, disrupting otherwise non-stop services. IndiGo, in particular, has reported the suspension of flights to destinations like Almaty, Kazakhstan, and Tashkent, Uzbekistan, with approximately 50 routes potentially affected by the closure


The content is provided by Sierra Knightley, Fact-Nest

Sierra

April 30, 2025

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