Summary:

Indian airports' expenditure is expected to increase by 12% to $7.07 billion (₹60,000 crore) by FY27, up from $6.24 billion (₹53,000 crore) in 2022-24. This investment will provide infrastructure for 65 million travelers annually. According to CRISIL's research of 11 private airports handling 60% of passenger traffic in FY24, revenues are projected to increase by 17% annually in FY25-27, driven by higher fares and increased passenger expenditure.

Passenger growth is predicted at an 8-9% CAGR from FY25 to FY27, building on 376 million passengers in FY23. Domestic traffic, accounting for over 80% of total traffic, will grow as business and leisure travel expands, aided by government air travel initiatives. The UDAN scheme, covering 84 airports and 579 routes, will further boost regional traffic. Airports are investing in infrastructure and boosting revenue. Despite debt, private airports' credit profiles are forecast to remain strong due to the anticipated revenue growth.

Source: IBEF (Link)

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