Overall passenger traffic is expected to grow by 5-7% in FY2026 to reach 430-440 million, against earlier estimates of 440-450 million. The revised growth though downwards will be supported by strong growth in international travel amid improving connectivity to newer destinations, continued uptick in leisure and business travel in the domestic segment and start of operations of new greenfield airports in H2 FY2026.

• The overall passenger traffic growth is estimated to moderate to 5-7% in FY2026 to reach 430-440 million, against ICRA’s earlier estimate of 7-9%, as cross-border tensions and lower availability of aircrafts post the tragic aircraft crash in Ahmedabad impacted the passenger traffic growth (+3% YoY) during 5M FY2026. International passenger traffic growth is expected to outpace domestic passenger traffic, amid improving connectivity to newer destinations.
• Revenues for ICRA’s sample set* are likely to grow by 7-8% in FY2026, supported by improvement in both domestic and international passenger traffic, increase in aeronautical revenues amid implementation of the fourth Control Period (CP4) tariff order at Delhi International Airport, and ramp-up of non-aeronautical revenues. The revenue growth in FY2026, adjusted for one-time income in FY2025, is higher at 15-16%. The operating margins are likely to remain healthy at around 51-52% during FY2026-FY2027.

Source: AAI, ICRA Research; * includes domestic, international as well as transit passengers at airports across India