Airport passenger traffic in India projected to touch record 440-450 million in FY26

The revenues are also likely to grow by around 18-20 per cent (on-year) in FY26, driven by the sustained improvement in both passenger traffic, increase in tariffs at Delhi, Bengaluru and Hyderabad airports and ramp-up in non-aeronautical revenues.

The sector's debt coverage metrics are projected to remain comfortable with interest cover above 5 times and debt service coverage ratio (DSCR) at above 3.5 times in FY26, according to credit rating agency ICRA.

FY25 saw an 11 per cent expansion in international traffic and a 9 per cent rise in domestic traffic.

The continued healthy growth momentum was driven by a steady increase in international travel amid improving connectivity to newer destinations, continued uptick in leisure and business travel in the domestic segment, along with improvement in air connectivity to tier II cities and key tourist destinations.

"International traffic continues to outpace domestic traffic growth, driven by healthy international tourism activity, along with improved connectivity to newer destinations. The growth momentum is likely to sustain in FY2026 as well, with expected YoY growth of 7-11 per cent and 6-8 per cent in international and domestic traffic, respectively," said Vinay Kumar G, Sector Head, Corporate Ratings, ICRA.

The healthy rise in international traffic will augur well for the airport sector, given that it is relatively more remunerative than domestic traffic.

Commenting on the airport operators' performance, Kumar said that with healthy profitability margins, the debt coverage metrics are expected to remain comfortable in FY26, despite higher interest outgo and debt repayments with the commercialisation of the capex programme at some of the key airports.

The credit profile of airport operators is projected to remain stable, supported by healthy accruals and comfortable liquidity, said the report.