Overview

• India and Pakistan have imposed reciprocal airspace bans following the Pahalgam terror attack, disrupting key international flight corridors.
• Major Western airlines, including Lufthansa and British Airways, are voluntarily avoiding Pakistani airspace despite having permission, citing heightened tensions.
• Flights between Europe and India are now approximately an hour longer, increasing fuel consumption, operational costs, and potential airfare for passengers.
• Air India is exploring domestic technical stops and alternative routes to mitigate an estimated $600 million annual loss from the airspace closure.
• Pakistan's Civil Aviation Authority is facing significant revenue losses from overflight fees, compounded by restricted airspace over Karachi and Lahore until May 31.