The average non-aero yield per passenger rises by over 50%

24 May 2024 CW Team

Associate Director of India Ratings & Research Rishabh Jain stated that in terms of what has been the contributor, it is primarily your duty-free revenues, your retail, and your land and space rentals, which have been the major contributors to the non-aero revenue.

The main source of aviation revenue is airline air traffic movements, which also include user development fees, passenger service costs, aircraft landing and parking fees, and other operator-imposed fees. Airports cannot unilaterally choose these fees, though, since they fall within a regulatory framework established by the Airports Economic Regulatory Authority of India.

For Indian airport operators, a rising share of non-aeronautical revenue is good news since it gives them a stable and reliable cash flow that they can employ to build and expand the airport. Worldwide, an airport's total revenue is largely derived from non-aeronautical sources.

According to Rishabh Jain, there has been a strong correlation between the growth in GDP and passenger traffic over the years. He stated that in the pre-COVID numbers, they were generally seeing a two-fold growth in passenger traffic compared to the growth seen in GDP. He mentioned that they achieved that number in the financial year 2024 (FY24) with a strong increase in passenger traffic growth following the impact of COVID-19, and they continue to see that in FY25 as well. He added that the growth would be somewhere around 1.6 to 1.8 times the GDP growth.

According to a survey by India Ratings & Research, the average non-aeronautical yield per passenger at India's public-private partnership airports climbed by 53.7% over the previous five years to Rs 312 in 2024. The non-aeronautical revenue generated by airports currently accounts for 52% of overall revenue, up from 48% in 2019, according to the ratings and research agency. Associate Director of India Ratings & Research Rishabh Jain stated that in terms of what has been the contributor, it is primarily your duty-free revenues, your retail, and your land and space rentals, which have been the major contributors to the non-aero revenue. The main source of aviation revenue is airline air traffic movements, which also include user development fees, passenger service costs, aircraft landing and parking fees, and other operator-imposed fees. Airports cannot unilaterally choose these fees, though, since they fall within a regulatory framework established by the Airports Economic Regulatory Authority of India. For Indian airport operators, a rising share of non-aeronautical revenue is good news since it gives them a stable and reliable cash flow that they can employ to build and expand the airport. Worldwide, an airport's total revenue is largely derived from non-aeronautical sources. According to Rishabh Jain, there has been a strong correlation between the growth in GDP and passenger traffic over the years. He stated that in the pre-COVID numbers, they were generally seeing a two-fold growth in passenger traffic compared to the growth seen in GDP. He mentioned that they achieved that number in the financial year 2024 (FY24) with a strong increase in passenger traffic growth following the impact of COVID-19, and they continue to see that in FY25 as well. He added that the growth would be somewhere around 1.6 to 1.8 times the GDP growth.

Infrastructure Urban

07 Oct 2025

India’s Rs 370 Bn Petrochemical Expansion to Shift Asian Supply

India’s planned investments worth over USD 37 billion (around Rs 3 lakh crore) in the petrochemical sector are poised to reshape Asia’s supply landscape, according to a new report by S&P Global Ratings.The report noted that India’s drive toward petrochemical self-sufficiency mirrors China’s earlier expansion and could intensify competition in the region. “India’s capacity additions will significantly alter trade flows and increase competition among Asian producers,” said Ker Liang Chan, credit analyst at S&P Global Ratings.S&P estimated that public sector enterprises ..

Real Estate

07 Oct 2025

Maharashtra Sets Up Authority to Boost Self-Redevelopment

The Maharashtra government has established a Self-Redevelopment Authority to support citizens in independently redeveloping old buildings, marking a major policy step for Mumbai and the surrounding metropolitan region.BJP legislator and Mumbai District Central Cooperative Bank president Pravin Darekar will head the new Authority, which will offer end-to-end guidance on project planning, funding, developer selection, and execution. The initiative follows the approval of the state’s New Housing Policy earlier this year, which allocated Rs 2,000 crore to promote self-redevelopment.Officials sai..

Real Estate

07 Oct 2025

MHADA Revises Premium and Payment Rules for Redevelopment

The Maharashtra Housing and Area Development Authority (MHADA) has revised its 2007 redevelopment policy to make the redevelopment of ageing housing societies in Mumbai financially sustainable.The key change involves recalibrating premium charges for commercial floor space in projects under Regulation 33(5) of DCPR 2034. The new formula links premium rates to land value, market rate, and proposed usage, replacing the earlier rule that charged 1.5 times the residential rate for commercial areas.Developers’ body CREDAI-MCHI had sought parity between residential and commercial rates to encourag..