Mumbai: A new report by Knight Frank India, in collaboration with NAREDCO, reveals that PPP airports (public-private partnership airports) are driving 87% of India’s non-aero revenues while handling 64% of the country’s total air traffic.
The study, titled Beyond the Runway – Scope of Non-Aero Revenue and Aerocities in India, highlights the increasing role of commercial revenue streams in shaping the future of India’s aviation and urban development.
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PPP Airports Lead Non-Aero Revenue Growth
According to the report, PPP airports including Cochin, Kannur, Mopa, Hyderabad, Delhi, Bengaluru, and those managed by Adani Airport Holdings, have emerged as leaders in non-aeronautical revenues through retail, F&B, duty-free, advertising, parking, and real estate leasing. This diversification is seen as critical for long-term financial sustainability as passenger numbers continue to surge.
Shishir Baijal, Chairman and Managing Director, Knight Frank India, said: “India’s airports are at an inflection point. The strong performance of PPP airports in driving non-aero revenues highlights how critical these streams are for long-term sustainability. With traffic set to rise to nearly 600 million by 2030, airports must think beyond runways and embrace integrated commercial ecosystems such as aerocities.”
Global Benchmarks: Delhi and Mumbai Airports Match Leading Hubs
The report notes that Mumbai and Delhi airports have achieved per-passenger non-aero revenues of USD 20.1 and USD 18.1 respectively—almost on par with London Heathrow (USD 21.6) and Tokyo Haneda (USD 19.9). This demonstrates that India’s top-tier PPP airports are capable of delivering world-class commercial performance, making them attractive to global investors.
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Air Passenger Traffic Outlook
India’s passenger traffic is projected to rise from 412 million in FY 2025 to ~600 million by FY 2030. The report underlines that while capacity expansion is crucial, monetizing the growing passenger base through non-aero revenues will be equally important for airport operators. Key drivers include rising incomes, regional connectivity, private sector participation, and modernized infrastructure.
Aerocities: The Next Growth Frontier
The study identifies aerocity development as a major opportunity for PPP airports to boost revenues and catalyze economic activity. Aerocities integrate office spaces, hotels, retail, logistics, and entertainment around airports, transforming them into vibrant urban ecosystems. Such developments not only strengthen airport profitability but also create new growth engines for cities and the wider economy.
Unlocking Revenue Potential
With traffic expected to grow by nearly 50% by 2030, even a modest USD 1 increase in per-passenger spending could raise non-aero revenues by 26%, amounting to USD 29.5 billion annually. This projection underscores the potential for PPP airports to scale retail, food courts, and entertainment facilities, while leveraging technology to enhance passenger experiences.
Dr Rajeev Vijay, Executive Director – Government and Infrastructure Advisory, Knight Frank India, added:
“Mumbai and Delhi airports generating non-aero revenues at par with Heathrow and Haneda demonstrates the potential of India’s aviation sector. Aerocity-led development will transform airports into economic powerhouses, unlocking sustainable revenue streams and broader urban growth.”
