Domestic airports are anticipated to demonstrate robust pre-tax profit growth for the fiscal year ending in 2025, according to a prominent consultancy. This optimistic forecast comes amidst sustained demand for air travel and India’s ambition to establish itself as a significant global aviation center.
According to aviation consultancy CAPA India’s Vice President, Paramprit Singh Bakshi, the airport industry’s pre-tax profit will increase by about 35%, reaching 103.7 billion rupees ($1.24 billion) from 76.8 billion rupees the previous year. Revenue for airport operators is forecasted to grow by 14.8% this year, supported by steady domestic passenger growth and a rapid recovery in international travel.
Bakshi noted a significant international recovery post-COVID, contributing to the industry’s strong performance. Indian airport operators have also benefitted from government-driven investments in developing new terminals and refurbishing existing ones.
While most airports are managed by the state-owned Airports Authority of India (AAI), key private players include GMR Airports, which operates the busiest airport in New Delhi, along with the Adani Group and Fairfax India.
India, the world’s most populous nation, aims to increase the number of airports to 350 by 2030, up from 144 in 2019, as per CAPA India estimates and government data. With airlines like IndiGo and Air India receiving jets from their record orders and new airports commencing operations, domestic passenger traffic is expected to reach 600 to 700 million annually, CAPA India projected. ($1 = 83.4575 Indian rupees)