India's Air Traffic to Hit 600 Million by FY30

02 Sep 2025 CW Team

The report emphasises the efficiency and critical role of airports managed under the public-private partnership (PPP) model. These PPP-operated airports currently handle 64 per cent of the country’s air traffic while contributing 87 per cent of total non-aeronautical revenue. This strong performance underscores the importance of robust commercial strategies in airport operations.

India’s major aviation hubs—Mumbai and Delhi—already generate non-aero revenues of USD 20.1 and USD 18.1 per passenger, respectively, nearly on par with leading global benchmarks like London Heathrow (USD 21.6) and Tokyo Haneda (USD 19.9). These revenue streams—ranging from retail, food and beverage, duty-free outlets, advertising, parking, to real estate leasing—are becoming increasingly central to the financial viability of airports.

“As India’s airports reach an inflexion point, the impressive performance of PPP airports highlights the essential role of diversified non-aero revenue streams in long-term sustainability,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India. He added that with traffic set to touch 600 million by 2030, airports must look beyond runways and adopt integrated commercial ecosystems, such as aerocities, to enhance profitability and contribute to urban development.

While capacity expansion will remain crucial, the report notes that the ability to monetise the rising passenger base through non-aeronautical avenues will be equally critical. This dual focus will help airports navigate the opportunities and challenges presented by the aviation sector’s rapid growth.

Rajeev Vijay, Executive Director, Government and Infrastructure Advisory at Knight Frank India, stated, “The fact that Mumbai and Delhi airports are already generating per passenger non-aero revenues comparable to Heathrow and Haneda demonstrates the immense potential of India’s aviation sector.”

India’s annual air passenger traffic is projected to surge by nearly 50 per cent—from 412 million in FY25 to 600 million by FY30—according to a new report by Knight Frank. This sharp rise is expected to significantly boost aeronautical revenue, driven by both increased passenger volume and enhanced per-passenger spending.The report emphasises the efficiency and critical role of airports managed under the public-private partnership (PPP) model. These PPP-operated airports currently handle 64 per cent of the country’s air traffic while contributing 87 per cent of total non-aeronautical revenue. This strong performance underscores the importance of robust commercial strategies in airport operations.India’s major aviation hubs—Mumbai and Delhi—already generate non-aero revenues of USD 20.1 and USD 18.1 per passenger, respectively, nearly on par with leading global benchmarks like London Heathrow (USD 21.6) and Tokyo Haneda (USD 19.9). These revenue streams—ranging from retail, food and beverage, duty-free outlets, advertising, parking, to real estate leasing—are becoming increasingly central to the financial viability of airports.“As India’s airports reach an inflexion point, the impressive performance of PPP airports highlights the essential role of diversified non-aero revenue streams in long-term sustainability,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India. He added that with traffic set to touch 600 million by 2030, airports must look beyond runways and adopt integrated commercial ecosystems, such as aerocities, to enhance profitability and contribute to urban development.While capacity expansion will remain crucial, the report notes that the ability to monetise the rising passenger base through non-aeronautical avenues will be equally critical. This dual focus will help airports navigate the opportunities and challenges presented by the aviation sector’s rapid growth.Rajeev Vijay, Executive Director, Government and Infrastructure Advisory at Knight Frank India, stated, “The fact that Mumbai and Delhi airports are already generating per passenger non-aero revenues comparable to Heathrow and Haneda demonstrates the immense potential of India’s aviation sector.”

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