Lingering costs of conflict: PIA reports Rs4.1 billion loss

ISLAMABAD: Pakistan International Airlines (PIA) incurred a loss of Rs4.1 billion due to the recent closure of Pakistan’s airspace, according to a written reply submitted by Defense Minister Khawaja Asif to the National Assembly.

The airspace remained closed from April 24 to June 30, 2025, amid heightened tensions between India and Pakistan. The written statement confirmed that permission for Indian aircraft to use Pakistan’s airspace was also withdrawn during this period. As a result, 100 to 150 Indian aircraft were affected daily.

Khawaja Asif informed in the letter that air traffic declined by approximately 20 per cent due to the closure. He noted that PIA has previously suffered losses from similar measures, citing the 2019 airspace closure, during which the Pakistan Airports Authority lost over Rs7 billion in overflying revenue.

In his statement, the minister said the recent financial losses are a result of necessary measures taken to safeguard national sovereignty and security. He added that defense and sovereignty take precedence over economic interests. “No price is too high when it comes to defending national sovereignty,” the defense minister noted.

Khawaja Asif also clarified that while Pakistan’s airspace is currently open to all foreign airlines, but the restriction on Indian aircraft remains in place. Likewise, Pakistani aircraft are not permitted to operate in Indian airspace.

Despite the financial impact, the minister said PIA has demonstrated resilience and maintained financial stability during the disruption.

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