Pakistan Extends Airspace Ban on Indian Aircraft to July 24, Deepening Air India's Financial Crisis

Pakistan has extended its ban on Indian civilian and military aircraft from using its airspace until July 24, according to a Notice to Airmen (NOTAM) issued by the Pakistan Airports Authority on June 17, 2026. The restriction, which was previously set to expire on June 24, applies to all Indian-registered aircraft as well as aircraft operated, owned, or leased by Indian airlines and operators. The airspace closure has remained in effect since late April 2025, following heightened tensions after a deadly attack in the Pahalgam area of Jammu and Kashmir.

The extended ban is contributing to severe financial difficulties for India's aviation sector, particularly Air India Group, which reported losses exceeding $2.8 billion in the 2025–26 fiscal year ending March 31, 2026, according to Singapore Airlines' annual report. Singapore Airlines, which holds a 25 percent stake in Air India, disclosed that the group posted losses of 3.56 billion Singapore dollars. These figures significantly exceed earlier projections from Reuters, which had estimated annual losses above $2.12 billion. The mounting losses represent a substantial deterioration from the previous fiscal year, when Air India reported a standalone loss of $415 million and consolidated losses of $1.13 billion including subsidiary Air India Express.

The airspace restrictions are forcing Air India to make significant operational adjustments, including route changes and flight reductions. Auditor KPMG flagged "indicators of impairment" in Singapore Airlines' investment in Air India, citing difficult operating conditions and geopolitical uncertainty as key factors. Air India, which remains unlisted and has not yet filed its financial results with Indian regulators, declined to comment on Singapore Airlines' report.