Air India may lose $60 crore due to Pakistan airspace ban 

The recent closure of Pakistan's airspace to Indian airlines, following the Pahalgam terror attack, could impose significant financial burdens on Indian carriers.

Air India, which has a 26.5% market share in India, flies to Europe, the United States and Canada, often crossing Pakistan's airspace. It operates many more long-haul routes than bigger domestic rival IndiGo.

Data from Cirium Ascend shows IndiGo, Air India and its budget unit Air India Express had roughly 1,200 flights combined from New Delhi scheduled for Europe, the Middle East and North America in April.

 The move, announced by Pakistan is projected to increase operational costs by around Rs 307 crore monthly due to longer flight durations and higher fuel consumption. 

Air India expects to face around $600 million in additional costs if a ban from Pakistan's airspace lasts for a year, and has asked the federal government to compensate it for the hit.

Air India on April 27 asked the Indian government for a subsidy model proportionate to the economic hit, estimating a loss of more than 50 billion Indian rupees ($591 million) for each year the ban lasts, according to a letter sent by the airline to the Civil Aviation Ministry.