Indian airports record Rs 7,000 cr loss in FY21
AVIATION & AIRPORTS

Indian airports record Rs 7,000 cr loss in FY21

The report named ‘India Airports Review FY21’, reported losses worth Rs 7,000 crore and also indicated how total passenger traffic dropped by 63% to 115 million passengers, a figure last obtained in 2008.

Comparatively, as per the report by CAPA India, they made profits worth Rs 5,160 crore in FY20.

The consolidated operating revenue of airports fell by 64.1% to Rs 8,310 crore.

The PPP (public-private partnership) operators accounted for 31% of these losses and AAI (Airports Authority of India) for 69%.

Total cash expenditure for the year touched Rs 13,590 crore, the report said.

CAPA India is an aviation consultancy firm and has numerous leading airport operators and airlines as its customers.

As per the data shared in Parliament last week by the Minister of State Civil Aviation, V K Singh, India’s airports are ready to continue incurring losses as the coronavirus pandemic is yet to recede. A majority of 107 out of 136 airports controlled by AAI have suffered losses, while 91 of these airports have recorded total losses worth Rs 1,368.82 crore. In FY19, 101 of the AAI-operated airports incurred losses of Rs 1,668.69 crore.

Domestic traffic dropped by 61.8% to 105 million passengers, but it was international traffic that underwent a much higher blow dropping by 84.8% to just 10.1 million passengers, the lowest level in around 30 years, the CAPA report noted.

Currently, scheduled international flights are yet banned from India and travel is only allowed through air bubble arrangements. As of now, India has this contract with Bangladesh, the United States, Afghanistan, Bhutan, Germany, Iraq, Bahrain, Netherlands, France, Oman, Canada, Tanzania, Japan, Kenya, Kuwait, Maldives, Nepal, Rwanda, Ethiopia, Seychelles, Nigeria, Qatar, the United Kingdom, Russia, Sri Lanka, Ukraine, UAE, and Uzbekistan.

The report also informed that the passenger traffic could have been 7-10 million higher than the current figures had it not been for constant regulation modifications made by several state governments.

It was especially the case in Maharashtra, where it is estimated Mumbai Airport alone may have dropped 3.5-4.5 million passengers as a consequence. Among the metro airports, Mumbai encountered the steepest drop in total traffic.

Mumbai airport was the worst impacted among metros and reported a 75.9% drop in passenger traffic and a loss of Rs 317.41 crore. Chennai airport stands next with a 75.3% drop in passenger traffic. Comparatively, Delhi observed a 66.4% drop and a loss of Rs 317.41 crore, Bengaluru a 66.3% drop, Hyderabad a 63.4% drop and Kolkata a 64.9% drop and a loss of Rs 31.04 crore.

Due to constraints related to the pandemic in Maharashtra, Bangalore (Bengaluru) overtook Mumbai for the first time to appear as the second busiest domestic airport in India in FY21, after Delhi, the report said.

Image Source


Also read: Jyotiraditya Scindia: Covid-hit aviation sector on recovery path

The report named ‘India Airports Review FY21’, reported losses worth Rs 7,000 crore and also indicated how total passenger traffic dropped by 63% to 115 million passengers, a figure last obtained in 2008. Comparatively, as per the report by CAPA India, they made profits worth Rs 5,160 crore in FY20. The consolidated operating revenue of airports fell by 64.1% to Rs 8,310 crore. The PPP (public-private partnership) operators accounted for 31% of these losses and AAI (Airports Authority of India) for 69%. Total cash expenditure for the year touched Rs 13,590 crore, the report said. CAPA India is an aviation consultancy firm and has numerous leading airport operators and airlines as its customers. As per the data shared in Parliament last week by the Minister of State Civil Aviation, V K Singh, India’s airports are ready to continue incurring losses as the coronavirus pandemic is yet to recede. A majority of 107 out of 136 airports controlled by AAI have suffered losses, while 91 of these airports have recorded total losses worth Rs 1,368.82 crore. In FY19, 101 of the AAI-operated airports incurred losses of Rs 1,668.69 crore. Domestic traffic dropped by 61.8% to 105 million passengers, but it was international traffic that underwent a much higher blow dropping by 84.8% to just 10.1 million passengers, the lowest level in around 30 years, the CAPA report noted. Currently, scheduled international flights are yet banned from India and travel is only allowed through air bubble arrangements. As of now, India has this contract with Bangladesh, the United States, Afghanistan, Bhutan, Germany, Iraq, Bahrain, Netherlands, France, Oman, Canada, Tanzania, Japan, Kenya, Kuwait, Maldives, Nepal, Rwanda, Ethiopia, Seychelles, Nigeria, Qatar, the United Kingdom, Russia, Sri Lanka, Ukraine, UAE, and Uzbekistan. The report also informed that the passenger traffic could have been 7-10 million higher than the current figures had it not been for constant regulation modifications made by several state governments. It was especially the case in Maharashtra, where it is estimated Mumbai Airport alone may have dropped 3.5-4.5 million passengers as a consequence. Among the metro airports, Mumbai encountered the steepest drop in total traffic. Mumbai airport was the worst impacted among metros and reported a 75.9% drop in passenger traffic and a loss of Rs 317.41 crore. Chennai airport stands next with a 75.3% drop in passenger traffic. Comparatively, Delhi observed a 66.4% drop and a loss of Rs 317.41 crore, Bengaluru a 66.3% drop, Hyderabad a 63.4% drop and Kolkata a 64.9% drop and a loss of Rs 31.04 crore. Due to constraints related to the pandemic in Maharashtra, Bangalore (Bengaluru) overtook Mumbai for the first time to appear as the second busiest domestic airport in India in FY21, after Delhi, the report said. Image Source Also read: Jyotiraditya Scindia: Covid-hit aviation sector on recovery path

Next Story
Infrastructure Urban

Designing Tomorrow: Amaravati’s Net Zero Landmark

Amaravati has achieved a defining landmark in India’s sustainable infrastructure journey with the inauguration of the APCRDA Project Office, the nation’s first government building to earn the IGBC Net Zero Energy Rating – Design Stage. Conceptualised by the Andhra Pradesh Capital Region Development Authority (APCRDA) and certified by the Indian Green Building Council (IGBC), the project exemplifies how governance, design and innovation can converge to deliver measurable environmental impact.A vision rooted in sustainabilitySet within a 4.3-acre site along the Seed Access Road in the Amar..

Next Story
Real Estate

Pidilite Elevates Construction with PPS

Pidilite Industries introduced Pidilite Professional Solutions (PPS) — a dedicated vertical for the construction and interiors ecosystem — at ACETECH Bengaluru 2025. Designed to empower architects, developers, contractors, and interior specialists, PPS delivers comprehensive support that extends far beyond products to ensure project excellence from concept to completion. Kavinder Singh, Joint Managing Director, Pidilite Industries, noted, “At Pidilite, we believe in enabling the construction fraternity to build boldly and sustainably. With Pidilite Professional Solutions (PPS),..

Next Story
Infrastructure Transport

Punjab, Centre Fast-Track Rajpura-Mohali Rail Line Development

The central government has fast-tracked the construction of the Rajpura-Mohali rail line to enhance connectivity in Punjab. This ambitious infrastructure project, aimed at improving transportation links between Rajpura and Mohali, has been identified as a key step in fostering regional economic growth. Union Minister for Railways, Ashwini Vaishnaw, announced the project’s acceleration during a recent assessment of the area. The rail line is expected to play a significant role in reducing travel time, promoting industrial growth, and boosting logistics efficiency in the region. The project,..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?