NEW DELHI (Dunya News) – Pakistan's continued closure of its airspace in 2025 has dealt a significant blow to India's aviation sector, with Air India attributing a major portion of its financial losses to the restrictions.
According to international aviation publication FlightGlobal, Air India recorded a loss of nearly $2.3 billion during the financial year ending March 31.
The airline said the closure of Pakistan's airspace following the Pakistan-India conflict forced it to reroute flights operating on western routes, leading to a substantial increase in operational costs.
Air India also cited rising fuel prices triggered by the US-Iran conflict and broader economic volatility as additional factors contributing to its financial difficulties.
Indian aviation expert Subhash Goyal said the continued closure of Pakistan's airspace has affected between 400 and 500 flights operated by Indian airlines.
The report added that increased operational challenges have placed further pressure on India's aviation sector following the airspace restrictions.