Pakistan shot itself in the foot, losing billions by closing airspace for Indian planes

International News:  Pakistan's decision to close its airspace for Indian aircraft was in response to India's decision to suspend the Indus Water Treaty on 23 April 2025. The move resulted in economic losses of Rs 4.1 billion to Pakistan between April 24 and June 30, according to a report presented in the National Assembly by Pakistan's Defense Ministry.

Thousands of flights affected

This decision directly affected 100 to 150 Indian flights per day, causing a drop of about 20% in Pakistan's air traffic. The ban also applied to Indian registered aircraft, owned, operated or leased. Pakistan's Defence Minister Khawaja Asif made it clear in Parliament that although the ban may have resulted in revenue loss, national sovereignty and security is paramount.

Losses less than estimates, but a worrying decline

Earlier it was estimated that Pakistan could lose up to Rs 8.5 billion, but the actual loss was limited to Rs 4.1 billion. This is also less than the loss of Rs 7.6 billion during a similar air ban in 2019. The Defense Ministry said that while the average overflight revenue was $508,000 in 2019, it would increase to $760,000 in 2025.

Overflying fee became the main reason

A large part of the income of Pakistan Airports Authority (PAA) comes from overflying fee, which is charged when a foreign aircraft passes through its airspace. When Pakistan imposed this ban on Indian aircraft, this fee from about 100-150 flights daily stopped. This had a big impact on PAA's income.

The airspace is still closed

This ban imposed by Pakistan is likely to continue till the end of August. India has also retaliated by imposing a ban on its airspace for Pakistani aircraft. This conflict is causing economic losses to both countries, but the political message is considered more effective. If this situation continues for a long time, the aviation industry and passengers of both countries may have to face more problems.