Pakistan has suffered a significant financial loss after closing its airspace to Indian aircraft. According to Dawn newspaper, citing an official release from Pakistan's Ministry of Defence, the Pakistan Airport Authority (PAA) lost ₹1,240 crore (Pakistani Rs. 4.1 billion) in just two months.

Pakistan closed its airspace in response to India suspending the Indus Water Treaty on April 22, following a deadly attack in Pahalgam, Jammu and Kashmir, in which 26 people—mostly tourists—were killed.

This airspace ban came into effect on April 24 and resulted in a major loss of revenue for the country, confirmed Pakistan's Defence Minister Khawaja Muhammad Asif. Pakistan revoked flight permissions for all Indian-registered aircraft, including those operated, owned, or leased by Indian aviation companies.

As a result of this decision, from April 24 to June 30, the Pakistan Airport Authority saw a drop in flight fee revenues. The ban affected 100–150 Indian flights per day and caused around a 20% decrease in Pakistan's transit air traffic, according to Dawn.

Meanwhile, Pakistan has extended the airspace closure for Indian flights until August 24. “The ban will now remain in effect until 4:59 AM on August 24. Pakistani airspace will not be available to any Indian-registered aircraft, whether operated, owned, or leased by Indian aviation companies,” said Pakistan's Aviation Authority in its NOTAM (Notice to Airmen).

This has had no impact on other international routes for Indian flights, but Pakistani flights remain restricted from using Indian airspace. India’s Minister of State for Civil Aviation confirmed that the NOTAM will be in effect until August 23, 2025.

The Pahalgam attack, in which 26 civilians were killed, was claimed by The Resistance Front (TRF), an offshoot of the Pakistan-based terrorist group Lashkar-e-Taiba. In response, India launched multiple countermeasures, including “Operation Sindhoora,” targeting terrorist infrastructure in Pakistan and Pakistan-occupied Kashmir (PoK).