New Delhi, Dec 12 (NationPress) Indian airports are anticipated to undertake a total capital expenditure (capex) exceeding Rs 60,000 crore in the three fiscal years culminating in 2027 to establish necessary infrastructure for catering to 65 million passengers annually, as indicated in a report published on Thursday.

This represents a 12 percent increase compared to the Rs 53,000 crore expected during the fiscal years 2022-2024, according to Crisil Ratings.

Alongside the anticipated surge in passenger traffic, an increase in tariffs and spending within the airport ecosystem is set to elevate the revenue of private Indian airports at an average growth rate of 17 percent between fiscal years 2025 and 2027.

This, combined with enhanced funding accessibility and a stable regulatory environment, will bolster the robust credit profiles of private airports. The report highlights 11 private airports, which are projected to account for approximately 60 percent of total passenger traffic and 95 percent of private passenger traffic in fiscal 2024.

“The number of passengers at Indian airports is projected to achieve a CAGR of 8-9 percent from 376 million last fiscal over the period of fiscal years 2025-2027,” stated Manish Gupta, Senior Director and Deputy Chief Ratings Officer at CRISIL Ratings.

“The growth in domestic traffic, which constitutes over 80 percent of the total volume, will be driven by escalating demand from both business and leisure travelers, along with the government’s initiatives to enhance the penetration of air travel,” Gupta added.

As of July 2024, the government had operationalized 84 airports and 579 routes under its ‘Ude Desh ka Aam Naagrik’ initiative to boost regional access.

With air traffic at these airports contributing 2 percent of the domestic air traffic, these regional routes are vital as they serve as feeder traffic to the major metro airports.

The report further indicates that international traffic is also anticipated to rise, buoyed by increased business travel, relaxed visa requirements, and enhanced connectivity as airlines introduce new routes.

India's domestic air passenger traffic reported a 5.3 percent increase, reaching 1.36 crore in October, up from 1.26 crore in the same month of the previous year, according to data compiled by the Directorate General of Civil Aviation (DGCA).