Air India Losses Due to Pakistan Airspace Closure Hit Rs8.2 Billion

As the Pakistan airspace closure drags into its 40th consecutive day, Air India is facing escalating financial pressure, with insiders warning that the situation is becoming nearly unsustainable.

The Indian national airline has already incurred losses exceeding Rs8.2 billion since the Pakistan airspace closure began on April 24, primarily due to longer flight routes, higher fuel consumption, and extended delays.

Sources within the aviation industry revealed that Air India is currently bleeding around Rs200 million each day. Flights to North America are now forced to detour through Europe, stopping in cities like Vienna or Copenhagen for refueling — significantly raising operating costs.

Air India CEO Pleads with Indian Government

In a sign of growing concern, Air India’s CEO Campbell Wilson has formally reached out to the Indian government, emphasizing the severe financial burden the closure is placing on airline operations. According to The Economic Times, Wilson warned that if the situation continues unchecked, it could push the airline into an unsustainable position.

An internal presentation cited by the publication showed that Air India had aimed to achieve profitability by FY 2027 under its ‘Vihaan’ transformation plan. However, Wilson admitted that the current disruption could delay those objectives. “It was always a five-year plan, but clearly this adds to the challenge,” he told the outlet.

Despite the setback, Wilson affirmed that the airline would continue operations as long as revenues cover operating costs. However, he acknowledged the uncertainty around how much the airline’s bottom line would be affected in the long run.

Air India is not alone. Other Indian carriers have also suffered significant financial setbacks, though exact figures remain undisclosed. A senior aviation official described the ongoing closure as a “full-blown storm” for the industry, citing increased costs, disrupted schedules, and growing logistical challenges.

With no diplomatic resolution in sight, experts now warn that airlines may soon be forced to cut routes or raise fares, passing the burden on to travelers unless the Pakistan airspace closure is resolved swiftly.