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Summary:

At Delhi's Indira Gandhi International Airport, non-aviation earnings have surpassed aeronautical services. In the first nine months of FY25, aviation-related operations accounted for only 20% of earnings, while 57% came from non-aero businesses such as retail, duty-free shopping, advertising, food and beverages, cargo, and commercial leases. The airport's overall revenue was Rs. 3,775.3 crore (US$ 436.10 million), including Rs. 597 crore (US$ 68.96 million) from commercial rents.

 

Delhi Airport has cemented its status as India's premier international airport, with 20 million passengers in the October-December quarter, a record high. Passenger traffic increased by 8.3% in the third quarter of FY25, while revenue increased by 8.1%. However, hefty revenue-sharing arrangements under the 2006 concession contract, requiring the government to receive 45.99% of income, have constrained profitability. This structure, designed to support smaller airports, limits Delhi's ability to fully capitalize on its growing revenues, aligning with global trends.

 

Source: IBEF

 

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