India's Air Travel Boom: 202 Million Passengers Despite Global Headwinds

Domestic traffic in India grew 1.6 per cent while international traffic in the country grew 6.9 per cent, the report from ratings agency CareEdge Ratings said.

Passenger traffic in India is now projected to reach 430 million in FY26, revised from its earlier estimate of 445 million passengers, the report said.

It noted that healthy operating income is expected to translate into an increase in profit before interest, taxes, depreciation, and amortisation (PBILDT) with an aggregate yoy growth of above 40 per cent for 11 airports.

It forecasted domestic passenger traffic to increase by 3.5 per cent for the entire fiscal year, when international traffic is expected to grow about 8 per cent, with the latter half of FY26 aided by the festive season and two new greenfield airports easing supply constraints and boosting traffic growth.

"The downward revision in growth came from cross-border tensions in Q1 FY26, lower aircraft availability due to fleet-wide inspections following the fatal aircraft accident in June 2025, and a delay in the arrival of wide-bodied aircraft," said Palak Vyas, Associate Director, CareEdge Ratings.

"Over the medium term, with passenger traffic expected to grow at a CAGR of 8-9 per cent, the outlook for the airport sector is favourable. However, the timely delivery of wide-bodied aircraft shall remain monitorable for growth in international traffic," he added.

The outlook is supported by airport and airline capacity expansions, and robust air travel demand fuelled by favourable demographics and a rising middle-class population, it noted.

The financial risk profile of airport players is expected to remain healthy, with aggregate aero revenue for 11 assessed airports estimated to grow 50 per cent YoY.

- IANS