Indian Cargo Airlines Face Soaring Costs Amid Airspace Closure Crisis

News: In retaliation for India suspending the Indus Waters Treaty after the April 22 terror attack, Pakistan closed its airspace to Indian carriers, prompting India to ban Pakistani airlines from April 30 to May 23, 2025.

This geopolitical standoff is costing Indian airlines ₹77 crore ($9.2 million) weekly due to longer detours, higher fuel usage, and crew costs.

Perishable and pharmaceutical exports are severely delayed, risking spoilage and supply chain disruptions. E-commerce logistics and major carriers like Air India are also under pressure, with potential losses exceeding $591 million.

While India explores relief measures and alternative routes, foreign airlines gain market share.

The prolonged crisis threatens India’s $500M perishable and $50B pharma exports, highlighting the need for urgent diplomatic or regulatory intervention.