India’s airport traffic set to hit record high

New Delhi

India’s airport passenger traffic is expected to reach a record 440–450 million in the financial year 2025–26 (FY26), according to a new report. This marks a healthy yearly growth of 7–9%. The rise is supported by more travel, better air connections, and stronger business and holiday demand.

The report by credit agency ICRA says that international traffic grew by 11% and domestic traffic by 9% in FY25. More people are flying abroad due to better links to new places and growing interest in international tourism. Within India, improved air connectivity to smaller cities and tourist spots is also driving demand.

Revenues from airports are expected to grow by 18–20% in FY26. This is helped by rising passenger numbers, higher ticket fees at key airports like Delhi, Bengaluru, and Hyderabad, and more income from shopping and other services at airports. The increase in international travel helps even more because it earns higher revenue than domestic travel.

Despite growing expenses from interest and loan payments, the airport sector’s financial health remains strong. Interest coverage is expected to stay above 5 times, and the debt service coverage ratio above 3.5 times. This means airports should have no trouble paying off debts.

ICRA also said airport companies are likely to stay financially stable in FY26 due to steady profits and good cash flow. With both local and global travel increasing, India’s airport sector is set for strong growth.