Private airports will have silver this fiscal year, and CRISIL predicts a 30% increase in revenue
The earnings of private airports are likely to increase by 30 percent this financial year. Aeronautical sources include fees collected from passenger airlines and cargo operators for the use of the infrastructure. Credit rating agency CRISIL said in its report that non-aeronautical sources include advertising, retail sales lounges, and duty-free shops.
Earnings of private airports in the country are likely to increase by 30 percent this financial year due to increasing traffic, a report said on Thursday. As passenger traffic increases, airports will see an increase in aeronautical and non-aeronautical revenues.
Aeronautical sources include fees collected from passengers, airlines, and cargo operators for the use of the infrastructure. Credit rating agency CRISIL said in its report that non-aeronautical sources include advertising, retail, lounges, and duty-free shops. It said nearly two-thirds of the increase in airports' revenue is expected to come from aeronautical sources, an increase of 45 percent year-on-year.
CRISIL said sustained economic growth, opening of more airports, and improving regional connectivity are providing the necessary enabling conditions for domestic traffic growth. Internationally, increasing business travel and easing of visa requirements for countries such as Malaysia and Vietnam, reduced waiting times for visa applications for Western Europe and improved connectivity to Western and Southeast Asia are important positives.
To accommodate the current surge in passenger numbers, airports more than doubled their capacity through major expansions made during the pandemic. The report claims that these capacity increases are being offset by the recent increase in aeronautical charges. It stated that non-aeronautical sources would account for the remaining one-third of revenue growth, representing a 15% increase from the previous year.
