Air India Adjusts to Longer Routes Following Pakistan's Airspace Closure

The recent closure of Pakistan’s airspace to Indian airlines has forced Air India to adapt by rerouting its international flights, leading to longer travel times, increased fuel costs, and disruptions for passengers. Despite these operational challenges, Air India has chosen not to raise its fares, even as its daily financial losses exceed Rs 200 million.

An Air India plane flying in the sky

Impact of Longer Routes on Flight Durations and Operational Costs

With Pakistan's airspace off-limits, Air India has been compelled to take alternative, longer routes for flights heading to major destinations such as North America, Europe, the UK, and the Middle East. These detours have significantly extended flight durations, resulting in increased fuel consumption and operational costs. The prolonged flights are also causing delays for passengers, further adding to the inconvenience.

Despite these challenges, Air India has kept its ticket prices stable. For example, the fare for a flight from Delhi to London remains approximately 735,000 Pakistani rupees (USD 2,640), while a Delhi to New York flight continues to be priced around 870,000 Pakistani rupees (USD 2,900). These fares have not changed since before April 23, 2025, in spite of the added costs from the longer flight routes.

Financial Losses and Strategic Decisions

Air India's daily losses have soared to more than Rs 200 million, as the extended routes and additional fuel requirements are weighing heavily on the airline’s financials. However, the airline has opted not to increase its fares, a decision likely driven by the need to remain competitive on the international stage. In a highly competitive market, especially for long-haul international flights, Air India is trying to maintain its market share by keeping its ticket prices stable, despite rising operational costs.

Conclusion: Navigating the Challenges of Airspace Restrictions

While the closure of Pakistan’s airspace has undoubtedly posed significant operational and financial challenges for Air India, the airline’s decision to avoid fare hikes demonstrates its commitment to passenger retention and market competitiveness. However, with continued financial losses and increasing operational difficulties, the future of Air India’s pricing strategy may depend on the duration of the airspace restrictions and how the situation evolves in the coming months.