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Pakistan airports authority faces Rs4.10b loss over airspace closure

Published on: August 8, 2025 4:23 PM

The Pakistan Airports Authority (PAA) reported a financial loss of Rs4.10 billion following the closure of airspace with India from April 24 to June 20, 2025. According to details shared in the National Assembly, the decision affected 100 to 150 Indian flights daily, causing a 20 percent reduction in overall air traffic and revenue loss from overflying charges.

Federal Defence Minister Khawaja Mohammad Asif confirmed in a written statement that the airspace ban was imposed during Marka-e-Haq as part of Pakistan’s strategic measures. He stressed that while the country suffered financially, the protection of sovereignty and defence priorities outweighed monetary concerns. The airspace remains open for all flights except those originating from India.

Before the tensions with India in 2019, Pakistan earned around \$508,000 per day from international airlines using its airspace. In 2019, Pakistan International Airlines (PIA) alone faced a \$54 million loss in overflying income due to a similar closure. The minister noted that despite temporary income suspensions, PIA maintained financial stability through other revenue streams.

The closure not only impacted revenue from overflight fees but also reduced regional flight connectivity, forcing several airlines to alter their routes. Industry experts believe such closures disrupt airline operations, increase fuel costs, and can have long-term effects on passenger traffic and bilateral aviation relations. However, the government views these measures as necessary in the context of national security.

Khawaja Asif reiterated that safeguarding the nation’s sovereignty is paramount, even if it results in temporary economic setbacks. He assured that aviation operations, except for Indian flights, continue as normal and that Pakistan remains committed to supporting the aviation sector’s recovery once tensions ease.

Filed Under: Business, Pakistan Tagged With: Federal Defence Minister Khawaja Mohammad Asif, India from April 24 to June 20, Latest, Pakistan Airports Authority (PAA), Pakistan airports authority faces Rs4.10b loss over airspace closure

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