Indian Economy News

India's aviation may fly into a good growth zone, air passenger traffic may grow around 8-11%: ICRA

India's airport operators and aviation stakeholders anticipate significant growth, with air passenger traffic expected to rise by 8-11% YoY to around 407-418 million this fiscal year, as per ICRA. This surge is attributed to increased leisure and business travel, improved domestic connectivity, and sustained international travel uptick.

In FY24, passenger traffic reached 376.4 million, exceeding pre-Covid levels by 10%. ICRA projected a 15-17% YoY revenue growth for its sample set in the current fiscal year. Vice President & Sector Head, Corporate Ratings, ICRA, Mr. Vinay Kumar G, commended India's airport passenger traffic recovery, surpassing global trends and reaching 106% of pre-Covid levels in CY23. Regulatory improvements have facilitated smoother tariff implementations, with ongoing efforts to resolve longstanding issues like cost of equity and forex losses. This outlook signals promising prospects for airport operators in FY25.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.