3rd AC Becomes Indian Railways Top Revenue Earner

27 Feb 2025 CW Team

Indian Railways has witnessed a remarkable surge in 3rd AC travel, with passenger numbers and revenue skyrocketing post-Covid, surpassing sleeper class for the first time in history. The shift underscores a growing preference for comfort, hygiene, and affordability among train travelers.

Key Trends Driving the Shift Unprecedented Growth in 3rd AC Passengers: In 2019-20, only 110 million passengers (1.4% of total travelers) opted for 3rd AC. By 2024-25, this number soared to 26 crore, marking a 19% rise.

Revenue Surge: Indian Railways’ earnings from 3rd AC ticket sales have jumped from Rs 123 billion in 2019-20 to Rs 300 billion in 2024-25, outpacing sleeper class as the top revenue generator.

Changing Passenger Preferences: Post-pandemic, travelers are prioritising cleaner and more comfortable travel options, leading to a mass migration from sleeper class to 3rd AC.

The data reflects a transformative shift in train travel habits, with 3rd AC emerging as the new standard for long-distance rail journeys in India.

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