India’s Alternative Airports Set to Handle 40 Million Passengers Annually by 2026: Crisil

Capacity Expansion to Ease Pressure on Metro Hubs​

New Delhi, February 24: India’s alternative airports, developed to reduce congestion at major metropolitan hubs, are projected to achieve a combined annual passenger handling capacity of around 40 million by the end of 2026, according to a report released on Tuesday by Crisil Ratings.

The report highlights that these airports will play a pivotal role in accommodating rising air travel demand as older airports in key metropolitan regions operate close to their design limits.

Capacity to Rise to 45–50 Million by FY30​

Over the next four financial years, further expansion at these alternative airports is expected to raise total annual capacity to between 45 million and 50 million passengers by fiscal 2030.

This projected growth is supported by pent-up demand caused by congestion at existing airports and the gradual expansion of catchment areas as regional connectivity improves. However, the report cautions that a timely ramp-up of operations will be essential to ensure financial stability and long-term viability.

Focus on NCR, MMR and Goa​

Crisil’s analysis covers operational and upcoming alternative airports located in regions that already host older, capacity-constrained airports. These include:

• Delhi National Capital Region
• Mumbai Metropolitan Region
• Goa

In regions such as NCR and MMR, older airports were operating at around 87 percent of their design capacity as of the last fiscal year. Limited space availability has restricted the scope for major expansion projects at these facilities.

Ankit Hakhu, Director at Crisil Ratings, stated that alternative airports in metropolitan cities are expected to handle 20 percent to 25 percent of total regional traffic by fiscal 2030. He added that scaling up both aeronautical and non-aeronautical revenues during the first control period will be critical for new airport operators.

Lessons from Mumbai and Delhi​

The report noted that the older Mumbai airport experienced slower growth after fiscal 2017 due to capacity limitations, particularly its inability to provide additional peak-hour slots to airlines.

In contrast, Delhi’s airport continued to grow during that period. However, without the development of a second airport in the region, Delhi would also have faced similar capacity challenges over the medium term.

Bengaluru and Hyderabad Offer Expansion Headroom​

Unlike NCR and MMR, airports in Bengaluru and Hyderabad still have room to grow. Both were operating at around 65 percent of their design capacity in the last fiscal year, leaving meaningful scope for expansion.

India’s Passenger Traffic to Touch 580 Million by FY30​

Looking ahead, India’s total airport passenger traffic is projected to rise from approximately 415 million this fiscal to nearly 580 million by fiscal 2030. This implies a compound annual growth rate of 8 percent to 9 percent.

The anticipated growth will be driven by strong economic activity, untapped air travel demand, and the easing of capacity constraints at major airports.

Gauri Gupta, Team Leader at Crisil Ratings, noted that while alternative airports present significant opportunities, they also face certain risks as they scale operations in a competitive aviation environment.