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I recently got a Schengen visa to visit Italy from 24th May to 7th June, 2019.

I have a query regarding leaving the European Union on the last day. My visa expires on 7th June. I am planning to leave Italy on the same day.

Is it that I should be leaving the whole Schengen air territory by the night of 7th June , or I should be leaving the airport before 7th of June? I have a flight on the night of 7th June, but the flight will be still in the Schengen air territory on 8th June. My visa expires on 8th.

Anupam Ah
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Flying on the last day of your visa can lead to complications but as this answer outlines, you should be good -- nonetheless, you will need to do some extra paperwork if your flight is cancelled or delayed.

The air space doesn't matter for visa purposes, so much so it is entirely possible your flight enters Schengen airspace without landing there, here is an example of a flight between two non-EU airports crossing Schengen airspace:

IST-CMN flight