Air India CEO: Pakistan Airspace Ban Driving Up Costs, Affecting Long-Haul Operations

New Delhi: The continued ban on Indian airlines from using Pakistani airspace is adding operational challenges and increasing flight durations, which is impacting Air India’s journey toward profitability, according to the airline’s CEO, Campbell Wilson.

In a recent interview with Bloomberg TV, Wilson said, “The impact is significant, but we have been able to sustain non-stop operations to most destinations in North America and Europe. It will certainly affect our bottom line.”

The ongoing airspace restrictions have added approximately an hour of additional flying time for west-bound long-haul flights. While Wilson did not disclose details of ongoing discussions with stakeholders, he acknowledged the logistical and financial strain the situation is creating.

The ban follows a sharp escalation in hostilities between India and Pakistan that began on May 7 — the worst military flare-up between the nuclear-armed neighbors in decades. The conflict, triggered by a brutal civilian attack in Indian-administered Kashmir on April 22, involved missile and drone strikes, as well as artillery exchanges. Although a ceasefire was declared on May 10, Pakistan has extended the airspace ban for Indian carriers until at least June 24.

Geopolitical Uncertainty Challenges Aviation Industry

Wilson highlighted that global geopolitical tensions are increasingly complicating airline routes and business strategies. “Uncertainty makes investment decisions difficult,” he said, echoing sentiments shared during the ongoing aviation summit in New Delhi.

He also noted that, so far, tariffs have not had a measurable impact on Air India’s key markets, but they remain an important issue for global carriers.

Shift in Student Travel Amid U.S. Policy Concerns

Wilson touched on another growing concern: the recent standoff between U.S. President Donald Trump and institutions like Harvard University. He said there is anecdotal evidence that Indian students — traditionally a large cohort in the U.S. — are beginning to explore study options in alternative destinations.

“People seem more willing to consider other locations than they were before,” Wilson said, noting that it’s a developing trend, and perceptions may continue to shift.

Fleet Expansion and Long-Term Growth

Having overseen the successful merger of Air India and Vistara in 2024 under Tata Group, Wilson declined to comment on media reports about possible negotiations for additional narrowbody aircraft purchases.

He confirmed, however, that Air India will begin receiving new aircraft from its existing order by the end of 2025. “Deliveries are later and slower than we hoped, which is limiting our short-term ambitions,” Wilson said. “But the long-term growth opportunity in this market is tremendous, and we remain very confident.”

Tata Group acquired Air India from the Indian government in 2021 and has since been focused on modernizing the fleet, improving customer experience, and restoring the airline’s global competitiveness.