NEW DELHI—Air India (AI), SpiceJet (SG), and IndiGo (6E) issued travel advisories due to airport closures in northern India, including Srinagar (SXR) and Amritsar (ATQ), amid escalating India-Pakistan tensions following Operation Sindoor. The disruptions, linked to the recent Pahalgam terror attack, have affected flights and prompted passengers to check their statuses.
The flight disruptions stem from the rising tensions after the Pahalgam terror attack on April 22, 2025, which tragically killed 26 people, mostly tourists. In response, India’s Ministry of Defence confirmed that Operation Sindoor targeted nine terrorist camps in Pakistan, describing the strikes as precise and non-escalatory. However, the airspace restrictions have increased flight durations by up to 2.5 hours for routes to Europe, North America, and the Middle East, raising fuel costs and airfares by an estimated 8–12%.
Indian airlines are facing weekly losses of ₹80–100 crore if the closures persist, while foreign carriers with overflight rights, like Emirates (EK) and Qatar Airways (QR), continue unaffected, gaining a competitive edge.
Following India’s Operation Sindoor on May 7, 2025, Air India (AI), SpiceJet (SG), and IndiGo (6E) announced significant disruptions to flight operations in northern India. The operation was a direct response to the Pahalgam terror attack that killed 25 Indians and one Nepali citizen. Airports in Dharamshala (DHM), Leh (IXL), Jammu (IXJ), Srinagar (SXR), Amritsar (ATQ), Chandigarh (IXC), and Bikaner (BKB) faced closures or restrictions, impacting departures, arrivals, and connecting flights.
Air India (AI) suspended all flights to and from Jammu (IXJ), Srinagar (SXR), Leh (IXL), Jodhpur (JDH), Amritsar (ATQ), Bhuj (BHJ), Jamnagar (JGA), Chandigarh (IXC), and Rajkot (RAJ) until at least noon on May 7, 2025, citing security concerns. Additionally, two international flights bound for Amritsar (ATQ) were diverted to Delhi (DEL).
IndiGo (6E) and SpiceJet (SG) reported similar impacts, with IndiGo noting that approximately 50 international routes could face delays or schedule adjustments due to airspace restrictions. IndiGo also cancelled flights to Almaty (ALA) and Tashkent (TAS) until at least May 7, 2025, as these routes are now out of range for its Airbus A320 fleet.
SpiceJet (SG) advised passengers of potential disruptions at northern airports, including Dharamshala (DHM), Leh (IXL), Jammu (IXJ), Srinagar (SXR), and Amritsar (ATQ), which remained closed until further notice. The airline extended waivers on rescheduling and cancellations for Srinagar (SXR) flights and operated an additional flight to Delhi (DEL) to reduce passenger inconvenience.
Looking ahead, Indian airlines are adapting to these challenges through schedule adjustments, additional fuel provisions, and enhanced passenger communication. Air India (AI) is considering routes over Chinese airspace to bypass Pakistan and Afghanistan. However, such routes require safety modifications, including increased oxygen supplies for high-altitude flights. As tensions persist, the Indian aviation industry braces for higher operational costs and potential shifts in premium travel to foreign carriers.
Meanwhile, the fallout from Operation Sindoor has also impacted the Pakistan Stock Exchange. On Wednesday, May 7, 2025, the Pakistan Stock Exchange's flagship KSE100 index opened 6,560.82 points lower at 107,007.68, down 5.78% after reports of the Indian strike on terror camps in Pakistan-occupied Kashmir (PoK). The market briefly recovered but ultimately tanked by 1,000 points amid investor fears and ongoing border tensions.
The KSE100 index was down 1,211 points or 1.07% to 112,356.89 at 11:21 am on the same day. The index had already closed 533.73 points lower on Tuesday, May 6, 2025, even after a rate cut by the State Bank of Pakistan. The Indian armed forces launched Operation Sindoor targeting terror infrastructure in Pakistan and Pakistan-occupied Jammu and Kashmir, according to an official statement from the Defence Ministry.
These military actions were described as a response to the Pahalgam terrorist attack, which resulted in the loss of 25 Indian lives and one Nepali citizen. The Defence Ministry emphasized that no Pakistani military facilities were targeted during the attack.
Investor sentiment was further dampened by a Moody’s report warning that the rising India-Pakistan tensions could significantly affect Pakistan’s economic stability. The Pakistan Indus Water Authority also alleged that India had blocked 90% of the water flows from the Chenab river, exacerbating tensions between the two nations.
On May 9, 2025, the IMF’s executive board is set to meet Pakistani officials for a fresh credit line of $1.3 billion as part of the climate resilience loan program. The IMF will also review the ongoing $7 billion bailout package extended to Pakistan, amidst concerns over the economic fallout from the heightened tensions.
The State Bank of Pakistan, on May 6, 2025, slashed the key rate by 100 basis points to 11%. While this initially caused a brief surge in the KSE100, the trend quickly reversed, closing over 500 points lower. Business leaders, including Ehsan Malik, CEO of the Pakistan Business Council, criticized the rate cut as inadequate given the expanding trade deficit and ongoing geopolitical tensions.
As the situation unfolds, the coming weeks will be crucial for both the Indian aviation industry and the Pakistani stock market. Airlines are focused on stabilizing operations and supporting passengers, while investors in Pakistan remain cautious amid the uncertainty. The high stakes of the current geopolitical climate continue to influence economic conditions in both nations.
Stay tuned for further updates on this developing situation.
