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

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

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.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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.

Next Story
Real Estate

Manglam Group to Develop Sheraton Hotel in Jaipur

Manglam Group has signed an agreement with Marriott International to develop a Sheraton hotel on the Jaipur–Ajmer Highway in Jaipur. The project will feature 220 keys and is being developed with an investment of around Rs 3.5 billion across more than 300,000 sq ft.The hotel marks Manglam Group’s third collaboration with Marriott International and forms part of its Rs 10 billion hospitality investment roadmap. The agreement was signed by Amrita Gupta, Director, Manglam Group and CEO, Manglam Spa and Resorts, and Rajeev Menon, President, Asia Pacific excluding Greater China, Marriott Interna..

Next Story
Infrastructure Urban

India Warehousing Show 2026 opens at YashoBhoomi

India's warehousing, logistics, and supply chain ecosystem came together as the 15th edition of India Warehousing Show (IWS) 2026 opened at YashoBhoomi, India International Convention & Expo Centre (IICC), Dwarka, New Delhi on June 25 (Thursday). Organised by RX India, the three-day event will run from 25-27 June 2026, bringing together policymakers, industry leaders, technology providers, and supply chain professionals under one roof. It also features a two-day knowledge conference that will run alongside the exhibition. Inaugurated by Pankaj Kumar, Joint Secretary - Logistics, DPIIT..

Next Story
Real Estate

Platinum Corp Launches Bespoke Presidential Suites

Platinum Corp has launched Platinum Stellar: Bespoke Presidential Suites, a luxury residential project on Main Avenue in Santacruz, Mumbai. The project has been positioned as a boutique, design-led development for high-net-worth individuals, business owners and legacy residents from the Bandra-Khar-Santacruz belt.The project has been developed in collaboration with celebrity interior designer Sussanne Khan and follows a design-first approach inspired by Art Deco architecture. It incorporates refined detailing, spacious layouts, premium material palettes and arrival experiences planned to creat..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement