ICRA Forecasts Strong Growth in Air Passenger Traffic for FY2025

ICRA projects a robust growth of around 8-11% year-on-year (YoY) in overall air passenger traffic, reaching approximately 407-418 million in FY2025. This growth is anticipated to be driven by a substantial increase in both leisure and business travel, enhanced connectivity to new destinations in the domestic segment, and a continued uptick in international travel. In FY2024, passenger traffic had already surged to 376.4 million, marking a remarkable 15% YoY increase and surpassing pre-Covid levels by 10%. Additionally, ICRA's sample set revenues are expected to grow by around 15-17% YoY in FY2025.

Vinay Kumar G, Vice President & Sector Head, Corporate Ratings, ICRA, remarked, “The recovery in Indian airport passenger traffic has been impressive compared to other major global counterparts. India's share in global passenger traffic rose from 3.8% in CY2019 to 4.2% in CY2023. While global passenger traffic rebounded to only 96% of pre-pandemic levels in CY2023, Indian airport passenger traffic surged to 106% of pre-Covid levels, driven by robust economic growth and the introduction of new airport routes. Indian air passenger traffic is expected to surpass global trends.”