KIA Reports Steady Growth in Non-Aero Revenue

Speedy Summary

• Revenue Growth: Kempegowda International Airport (KIA) recorded a 28% increase in non-aeronautical revenue between FY 2023 and FY 2025, rising from ₹8.01 billion to ₹10.29 billion.
• Contributors to Growth: The uplift was attributed to the opening of Terminal 2, which enabled significant commercial expansion in retail, food and beverage outlets, lounges, and duty-free shops.
• Terminal Details: Terminal 2 spans an area of 2,55,661 sq. m and was inaugurated by Prime Minister Narendra Modi on November 11, 2022; operations commenced on January 15, 2023.
• Aeropolis Strategy: Bangalore International Airport Limited (BIAL),the airport operator,is working on expanding its aeropolis concept with Maintenance Repair & Overhaul (MRO) facilities and multi-use commercial developments using extensive land holdings around KIA.
• Comparative Analysis: Mumbai ($20.1 per capita) and Delhi ($18.1 per capita) airports lead in non-aero revenue among Indian airports followed by Cochin ($13.5),Hyderabad ($8.4), and Bengaluru ($8.1). Globally recognised benchmarks like Singapore’s Changi ($26 per capita) remain ahead.

Indian Opinion Analysis

The reported growth in non-aeronautical revenue at Kempegowda International Airport reflects a broader trend of Indian airports embracing diversified financial models surpassing reliance purely on airline operations or passenger traffic fees. By leveraging commercial infrastructure such as retail outlets and food services enriched through investments like Terminal 2’s growth, KIA demonstrates readiness for global benchmarks.

While Mumbai’s and Delhi’s higher per-capita revenues signify their established status as international hubs nearing global standards like Heathrow or Tokyo Haneda airport figures-a critical milestone identical plays work enduring edges needed-per-million ecosystem future transactional-expand horizons