Pakistan’s decision causes THIS India company to lose Rs 8,000 cr
Tensions between India and Pakistan have risen after a recent incident in Pahalgam. India responded by suspending the Indus Water Treaty, affecting millions in Pakistan. In return, Pakistan closed its airspace to Indian flights causing major problems for Indian airlines.
Because of this airspace closure, flights from India to the US and Europe are now expected to take two to three hours longer. This will increase the airlines’ operational costs, and passengers will have to pay 8% to 12% more for tickets.
The biggest impact has been on IndiGo, India’s largest airline. On Friday, IndiGo’s shares fell sharply by around 4%, wiping out more than Rs 8,000 crores from its market value. The stock closed at Rs 5,313.20, a drop of 3.75% or Rs 207.15 per share. During the day, the stock even hit a low of Rs 5,198.70.
Even though IndiGo shares had performed well in the past year—giving investors a 35% return—this recent drop has shaken the market. Just a few days ago, on April 22, 2025, IndiGo’s share price touched Rs 5,646.90, close to its 52-week high. However, after Pakistan’s move, it fell significantly.
The company’s market cap also took a big hit. It fell from Rs 2,13,328.06 crore on Thursday to Rs 2,05,322.97 crore by the end of Friday’s trading session, marking a loss of Rs 8,005.09 crore.
The primary reason for this sudden downfall is the expected rise in operational costs due to longer flight routes. This will not only hurt the company’s profits but will also burden Indian travelers flying to America and Europe.
Meanwhile, Akasa Air showed strong growth in passenger numbers, increasing by 156% compared to last year, although its market share remains low at 0.7%. IndiGo’s passenger load factor stayed strong at 85.5%, despite a small drop compared to the previous month.
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