The Air Balloon makes the holder ungrounded, which means that the holder is immune to damaging Ground-type moves and several related effects. If the holder or its substitute is hit by a damaging move (even if it has Disguise), the Air Balloon is destroyed. A message is displayed when a Pokémon is sent into battle while holding an Air Balloon (if its effect is not negated).
The Air Balloon does not make the holder ungrounded while Gravity is in effect or if it is under the effect of Ingrain, Smack Down, or Thousand Arrows (but this does not prevent it from bursting).
An Air Balloon will not burst while Magic Room is in effect, or if the holder has the Ability Klutz or is under the effect of Embargo. A burst Air Balloon cannot be recovered with Recycle or Pickup. The Air Balloon bursts before it can be stolen by Thief, Covet, or Magician. Whether a Pokémon is affected by terrain is determined before the Air Balloon bursts, so terrain cannot prevent a Pokémon holding an Air Balloon from being afflicted by a status condition from the move that bursts the Air Balloon.