New Delhi, Dec 12 (IANS) Indian airports are projected to incur a cumulative capital expenditure (capex) of over Rs 60,000 crore in the three years through fiscal 2027 to add requisite infrastructure for 65 million passengers per annum, a report showed on Thursday.
This is 12 per cent increase compared to Rs 53,000 crore during fiscals 2022-2024, according to Crisil Ratings.
In addition to expected growth in passenger traffic, increase in tariffs and spending within the airport ecosystem will lift revenue of private Indian airports at an average growth rate of 17 per cent between fiscals 2025 and 2027.
That, coupled with improved funding access and a predictable regulatory regime, will support the strong credit profiles of private airports, noted the report of 11 private airports, which accounted for an estimated 60 per cent of overall passenger traffic and 95 per cent of private passenger traffic in fiscal 2024.
“The number of passengers at Indian airports is expected to clock a CAGR of 8-9 per cent over fiscals 2025-2027 from 376 million last fiscal,” said Manish Gupta, Senior Director and Deputy Chief Ratings Officer, CRISIL Ratings.
“Growth in domestic traffic, which comprises over 80 per cent of overall volume, will ride on rising demand from the business and leisure segments and government push to increase penetration of air travel,” said Gupta.
As of July 2024, the government had operationalised 84 airports and 579 routes under its ‘Ude Desh ka Aam Naagrik’ scheme to increase regional penetration.
With air traffic in these airports contributing 2 per cent of domestic air traffic, these regional routes are important as they provide feeder traffic to the metro airports.
According to the report, international traffic will also grow, driven by increased business travel, easing visa requirements, and improving connectivity with airlines adding new routes.
India’s domestic air passenger traffic registered a 5.3 per cent increase to reach 1.36 crore in October, from 1.26 crore in the same month last year, according to data compiled by the Directorate General of Civil Aviation (DGCA).
–IANS
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