At Delhi’s Indira Gandhi International Airport, non-aviation revenues have become the dominant source of income, surpassing traditional aeronautical services. In the first nine months of FY25, just 20% of the airport’s earnings came from aviation-related activities such as landing fees, aircraft parking, and passenger security charges. The majority, 57%, was generated through non-aero activities, including retail, duty-free shopping, advertising, food and beverages, cargo, and commercial rentals. The airport’s gross income for the period stood at Rs. 3,775.3 crore (US$ 436.10 million), with Rs. 597 crore (US$ 68.96 million) from commercial rentals, largely due to the development of its land bank. This trend reflects a shift towards a commercial hub model rather than just a transportation facility. Retail and duty-free sales contributed 28%, while food and beverage sales grew by 23%, accounting for 10% of total revenue.
Delhi Airport continues strengthening its position as the country’s primary international gateway, handling over 20 million passengers in the October-December quarter, an all-time high. Passenger traffic increased by 8.3% in Q3 FY25, with revenues rising by 8.1%. However, high revenue-sharing agreements under the 2006 concession deal, which require 45.99% of total revenue to be shared with the government, have impacted profitability. This arrangement, designed to fund smaller airports through the Airports Authority of India (AAI), has limited Delhi’s ability to capitalise on its growing earnings fully. The global trend of airports relying on non-aero revenues is also evident at other major airports, such as Singapore’s Changi Airport, where 55% of its income comes from non-aero activities.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.