India’s airport industry is projected to report a profit before tax of USD 1.3 billion for the current financial year, according to aviation advisory firm CAPA India. The firm presented its projections at an aviation summit held in the national capital on Friday.
The anticipated profit translates to Rs 256.1 (USD 3.1) per passenger for the fiscal year ending March 2025. Passenger throughput at Indian airports is estimated to rise to 404.9 million during this period, with 81.1% of this being domestic traffic and 18.9% international, CAPA India noted.
The report highlighted that the Airport Authority of India's (AAI) profitability is expected to remain strong through FY2024 and FY2025.
“The topline will grow due to an increase in aeronautical revenue, along with the receipt of revenue share from the recently privatised six non-metro airports, without having to incur any associated expenses—resulting in higher profitability,” CAPA India stated.
For the current fiscal year, India's airport operators are forecast to register Rs 359.8 billion (USD 4.3 billion) in revenue, marking a 14.8% year-on-year growth from FY2024.
CAPA India also noted that airport infrastructure at both metro and non-metro locations is ahead of demand, with an ongoing USD 11 billion investment pipeline, including significant developments in Tier 2 and Tier 3 airports.
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