Is India's Air Passenger Traffic Set to Surge by 50% to 600 Million by FY30?
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Synopsis
The air travel landscape in India is on the verge of transformation, with a projected 50% rise in passenger numbers by FY30. Discover the implications for airports and the economy as they adapt to this surge in traffic.
Key Takeaways
- Projected growth in air passenger traffic to 600 million by FY30.
- PPP airports crucial for non-aero revenue generation.
- Non-aero revenues are essential for financial sustainability.
- Mumbai and Delhi are approaching global revenue benchmarks.
- Strategic planning is vital for airport operators.
New Delhi, Aug 30 (NationPress) A recent report indicates that India's air passenger traffic is anticipated to rise by almost 50 percent, soaring from 412 million in the last financial year (FY25) to 600 million by FY30.
According to Knight Frank, this growth will significantly boost aeronautical revenue, driven by both increasing passenger figures and enhanced per-passenger expenditure.
The findings reveal that airports operating under the public-private partnership (PPP) model contribute to 87 percent of the nation’s total non-aero revenue while accommodating 64 percent of total traffic, underscoring the effectiveness of the PPP framework.
The superior performance of PPP airports compared to government-run ones highlights the necessity for strong commercial strategies.
Notably, the largest airports in India, Mumbai and Delhi, achieve per capita non-aero revenues of $20.1 and $18.1, respectively, closely aligning with top global standards, including London Heathrow at $21.6 and Tokyo Haneda at $19.9.
Non-aero revenue channels such as retail, food and beverage, duty-free, parking, advertising, and real estate leasing are becoming increasingly vital for maintaining financial stability.
As air traffic is projected to multiply in the upcoming years, this diversification will be essential for airport operators.
“India’s airports are at a pivotal moment. The impressive performance of PPP airports in generating non-aero revenues accentuates the importance of these streams for long-term viability,” stated Shishir Baijal, Chairman and Managing Director of Knight Frank India.
With traffic expected to reach nearly 600 million by 2030, airports must adopt a broader perspective beyond runways and develop integrated commercial ecosystems like aerocities. This strategy will not only enhance airport profitability but also act as a catalyst for urban growth, he added.
The rapid increase in annual air passenger traffic poses both opportunities and challenges for airport operators. While expanding capacity remains crucial, leveraging this growing passenger base through non-aero revenue avenues will be just as important for financial sustainability, the report concluded.
Rajeev Vijay, Executive Director of Government and Infrastructure Advisory at Knight Frank India, remarked, “The reality that Mumbai and Delhi airports are generating per passenger non-aero revenues comparable to Heathrow and Haneda showcases the immense potential of India’s aviation sector.”
Point of View
We uphold a commitment to delivering impartial and accurate information. The anticipated growth in India's aviation sector underscores the importance of strategic planning and innovation among airport operators to harness the potential of increased air traffic effectively.
NationPress
30/08/2025
Frequently Asked Questions
What is the projected growth of air passenger traffic in India by FY30?
India's air passenger traffic is projected to grow by nearly 50% from 412 million in FY25 to 600 million by FY30.
What role do PPP airports play in India's aviation sector?
PPP airports generate 87% of the country's total non-aero revenue and handle 64% of total traffic, demonstrating their efficiency and critical role.
How do non-aero revenue streams impact airport finances?
Non-aero revenue streams like retail and advertising are central to financial sustainability, especially with rising passenger numbers.
What are some examples of non-aero revenue sources?
Examples include retail shops, food and beverage outlets, duty-free sales, parking fees, advertising, and real estate leasing.
How do Mumbai and Delhi airports compare to global benchmarks?
Mumbai and Delhi airports generate per capita non-aero revenues comparable to global leaders like Heathrow and Haneda.
