India’s Air Passenger Traffic to Reach 485 Million by FY27, Says Report

Rapid Summary

• Air passenger traffic in India is projected to grow at a compound annual growth rate (CAGR) of 9% between FY2025 adn FY2027, reaching approximately 485 million passengers by FY27, according to CareEdge Ratings.
• International passenger traffic is expected to grow faster due to more wide-body aircraft from FY26, while domestic traffic will see steady growth after exceeding pre-COVID levels by FY23.
• Passenger traffic had recovered fully in FY24, with volumes surpassing pre-pandemic levels at 1.10 times for domestic flights and 1.04 times for international flights.
• Initial projections of passenger volume for FY25 were revised down from 425 million to 410 million due to delays in aircraft deliveries and adverse whether conditions,though teh Mahakumbh event may help offset slow growth later this fiscal year.
• Between FY21 and December 2023, Rs 80,000 crore was invested in airport infrastructure capex; around rs 30,000 crore additional investment is anticipated between FY26-FY30 focusing on brownfield expansions and greenfield airport projects worth Rs 25,000 crore starting operations by H1FY26.
• City-side growth (CSD) accounts for about 18% of total capital expenditure but involves higher risk factors compared to aero operations revenue generation opportunities seen globally like Singapore’s Changi Airport model.
• Revenue prospects: Aero revenues at private airports are forecasted to grow at a CAGR of approx. 42%, while non-aero revenues are expected at around CAGR rates considerably less internationally comparative categories servicing clientele sales footcap redevelopment usage corridors pending inputs potentialities alike data mainstream insights remainendent overall tracks forthcoming asset proceeds via regularized clear output terms audited

Indian Opinion Analysis
India’s aviation sector showcases strong recovery post-pandemic backed by robust demand trends both domestically/internationally-country leveraged capitalize=sales draft approvals rollout schemes-wise providers aligned ddat