India’s aviation industry has reportedly incurred around $2 billion in losses since Pakistan closed its airspace to Indian aircraft in April 2025, forcing airlines to take longer routes and spend more on fuel and operations.

Air India is suspending flights from Delhi to Vienna from October 31 and to Birmingham from November The airline cited higher operating costs, rising jet fuel prices and reduced aircraft availability due to maintenance and cabin upgrades.

Reports cited by Express News put Air India’s annual losses linked to the airspace closure at between $455 million and $591 million. The airline has told the Indian government that the restrictions have affected its profit before tax.

Pakistan closed its airspace to Indian aircraft on April 23, 2025, following the Pahalgam incident. The restriction has forced Indian airlines to use longer routes through Iran or Central Asia.

The detours have reportedly raised fuel costs by as much as 29 per cent and added between 30 minutes and three hours to flight times. Around 800 Indian flights a week are affected, including approximately 640 operating through Delhi.

Air India is also reportedly considering suspending flights from Delhi to Copenhagen and reducing services to London Gatwick and San Francisco under its 2026–27 winter schedule.

The airline attributed plans to reduce international operations to a combination of the airspace restriction, higher fuel prices and limited availability of Boeing 787 aircraft.

A Pakistan Airports Authority spokesperson said the restriction remained in effect through November, with a formal Notice to Airmen issued.