- Crisil predicts a 30% increase in revenue for private airports due to a 10% rise in passenger traffic and tariff hikes.
- Revenue growth will restore debt servicing cushion to pre-pandemic levels, supported by non-aeronautical revenue.
- Increase in passenger volume and non-aeronautical revenue sources will drive revenue growth for airports.
According to a Crisil report, private airports are poised for a significant revenue boost of 30% this fiscal year. The increase is attributed to a projected 10% rise in passenger traffic, combined with tariff hikes linked to capital expenditure and growing non-aeronautical revenue per passenger.
The surge in revenue will help private airport operators regain their debt servicing cushion to pre-pandemic levels, providing much-needed financial stability. Crisil’s study, which focused on 10 private airports representing 60% of overall passenger traffic in FY24, highlights the positive outlook for the sector amidst improving economic conditions and enhanced regional connectivity.
With passenger volume on the rise, airports are expected to see an increase in both aeronautical and non-aeronautical revenue streams. While aeronautical tariffs are set to increase by an average of 25%, non-aeronautical revenue sources, including retail, food, beverage, and advertising, are also projected to grow steadily.
