Air India could incur additional expenses of up to $600 million following Pakistan’s decision to close its airspace to Indian airlines, Reuters reported Thursday, citing a letter from the company. The closure, expected to persist until May 23, could result in substantial financial strain for Air India, as rerouted flights face longer durations, leading to increased fuel consumption and delays.

The airline estimates a loss of over $591 million annually for every year the airspace remains closed, as longer flight times will also affect passengers. The letter highlights that Air India’s expenses include added fuel costs, crew requirements, and the logistical challenges posed by the airspace closure.

This restriction, which came in retaliation for India’s diplomatic actions following the Pahalgam attack—allegedly supported by Pakistan's deep state—does not apply to international airlines. Consequently, Air India has requested subsidies from the government to offset these costs, suggesting that a subsidy for affected international flights would be a fair and verifiable option, which could be revoked once the situation improves.

While neither Air India nor the Aviation Ministry have publicly commented, other carriers, such as IndiGo, are also feeling the strain. For instance, its New Delhi-Baku flight took an additional 38 minutes on Thursday. However, the impact is most significant for Air India, which operates a large number of international flights that typically fly over Pakistani airspace.

In April, an estimated 1,200 flights from New Delhi to destinations in Europe, the Middle East, and North America were affected by the airspace closure. With Delhi-Middle East flights now needing to fly at least an hour longer, fuel costs are expected to soar.

The government, while focused on responding to the Pahalgam attack and the broader fallout, is also considering measures to mitigate the financial damage to airlines. This includes possible tax breaks, the addition of extra pilots on longer transatlantic flights, and working with China for overflight clearances—a move signaling the complex international implications of the current situation.