From Runway to Revenue: Indian Airports Eye Record Profits in FY25

The Indian airport industry is set to soar in profitability this year. According to figures, Indian airports are expected to yield approximately $1.24 billion in profit before tax in the current financial year, aided by tax cuts.

Let’s explore how airports are achieving new profitability heights and what lies ahead for the Indian airport industry in the coming years.

What’s Happening?

Paramprit Singh Bakshi, Vice President of CAPA India, stated at the CAPA India Aviation Summit that the profit per passenger is estimated to be around Rs 256.1 (approximately $3.1) by March 2025. Moreover, during this period, the number of travellers using Indian airports is also expected to increase. It is estimated that a total of 404.9 million passengers will travel by air, with 81.1% travelling domestically and 18.9% internationally.

Increase in Airport Numbers

Over the past decade, the number of airports in the country has increased from 74 to 157. Additionally, the government is planning regulatory changes to enhance air connectivity in Tier 2 and Tier 3 cities.

According to Union Civil Aviation Minister Rammohan Naidu, the government is preparing a 100-day action plan to accelerate growth in the aviation sector and achieve the long-term goal of ‘Viksit Bharat’ by the completion of 100 years of India’s independence in 2047.

What’s in it for Investors?

The success of the Indian airport industry is attributed to contributions from both government and private sectors. While Airport Authority of India (AAI) manages most of the busiest airports in the country, private companies like GMR Airports manage Delhi’s Indira Gandhi International Airport. Moreover, other private entities like Adani Group and Fairfax India are also making significant contributions to this sector.

What’s Next?

According to the International Air Transport Association (IATA), by 2030, India is set to become the world’s third-largest air passenger market, surpassing China and the United States in terms of passenger numbers.

Not only that, but India is also the most populous country globally, and the demand for air travel continues to rise steadily. CAPA India estimates that while there were 144 airports in India in 2019, this number is projected to reach up to 350 by 2030, according to government figures.

That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!

The article is for information purposes only. This is not an investment advice. Disclaimer: Teji Mandi Disclaimer