‘Airspace restrictions have impacted $500 million perishable export market’

V Chandra Kumar, Chairman and Managing Director, Active Freight Logistics said, “The immediate closure of 16 airports across Northern and Western India—including major hubs like Amritsar (ATQ) and Chandigarh (IXC) has severely disrupted air cargo operations. These airports are pivotal for the transportation of high-value and time-sensitive goods such as pharmaceuticals, electronics, and perishables. While a significant portion of India’s cargo is transported via sea, the airspace restrictions have particularly impacted the $500 million perishable export market, which relies heavily on timely air shipments. Exporters of garments, gems, perishables, and electronics are facing challenges, especially with the looming July 9 tariff deadline. The closure of Pakistani airspace has compelled Indian carriers, notably Air India and IndiGo, to reroute flights to Europe, North America, and the Middle East. These detours, often over the Arabian Sea or Central Asia, have resulted in increased flight durations by 2 to 4.5 hours, leading to higher fuel consumption and operational costs. Air India estimates an annual loss of approximately $600 million due to these extended routes and has sought government assistance to mitigate the financial impact. Similarly, IndiGo anticipates significant losses, with the combined industry impact projected at ₹7,000 crore (~$800 million) annually. These increased operational costs are expected to translate into higher freight rates. Analysts predict fare hikes of 8–12% to offset the additional expenses, which may burden both cargo operators and passengers. The combined effect of airport closures in Northern India and the suspension of overflight rights through Pakistani airspace has disrupted cargo operations, leading to increased costs and potential delays. While the full extent of the impact is still unfolding, stakeholders across the logistics and aviation sectors are closely monitoring the situation and exploring alternative routes and strategies to mitigate disruptions.”