Air India has absorbed an estimated ₹4,000 crore hit after Pakistan shut its airspace to Indian‐operated carriers, its Chief Executive Officer Campbell Wilson disclosed at an industry event in New Delhi. He said the disruption, triggered by the April attack in Pahalgam that claimed 26 lives, forced long‐haul flights to reroute, raising fuel burn, crew costs and turnaround times.
Wilson pointed out that flights to major markets such as North America and Europe—which account for roughly a quarter each of the airline’s international operations—were especially impacted because of detours around Pakistani airspace. He characterised the situation as part of a set of “unprecedented shocks” hitting the carrier’s transformation journey, including the June 12 crash of a Boeing 787-8 in Ahmedabad that killed 260 people and air‐space constraints over the Middle East.
The carrier is currently in the “climb” phase of its five-year turnaround plan launched by the Tata Group in 2022. Wilson noted that the airspace rerouting and disruption have contributed to widening losses in the financial year ended 31 March 2025. According to data cited by the airline, revenue climbed about 15 per cent to ₹78,636 crore, but losses expanded to ₹10,859 crore.
Industry analysts highlight that the closure has added time and cost to operations: fuel consumption has increased, flights are on average 60 to 90 minutes longer on certain routes, and crew duty times are extended, adding payroll and scheduling burdens. While the disruption began in April when Pakistan banned Indian airlines from its airspace, the airline had previously informed the ministry in June that losses could hit ₹5,000 crore if the closure continued.
The airline is managing a complex recovery path. The effects of the crash in June still resonate: its interim investigation found no fault with aircraft, engines or operations, but the reputational fallout and operational pause weighed heavily on the schedule during the post-incident period. Now compounded by overflight restrictions and supply-chain constraints for aircraft delivery and refurbishments, the airline’s challenges are both external and internal.
Wilson maintained that the headline recovery target remains intact: building a globally competitive carrier with an Indian heart. He cautioned that “uncertainty in global trade policy, global stability and politics” remains the operative word for 2025 and beyond. Despite these headwinds the carrier has reinstated its full international schedule as of 1 October, following a safety-pause after the crash.
Court advises counsel to end arguments when indication given 