India’s operational and upcoming alternate airports are expected to have an annual capacity of 40 million passengers by the end of this year, with their next phase of expansions over the next four fiscals, said Crisil Ratings.
As per the agency, these airports are poised to cater to 45-50 million passengers annually by fiscal 2030, driven by pent-up demand, given the capacity constraints at the older airports, and expansion of catchment areas.
Besides, airport traffic in India is projected to rise from 415 million passengers this fiscal to 580 million by fiscal 2030, at a compound annual growth rate of 8-9 per cent driven by strong economic activity, untapped demand and easing of airport capacity constraints at select metros.
However, it will grow at a muted 0-1 per cent this fiscal because of weak demand after a major aircraft mishap, airbase closures due to uncertainties along India’s western border in the first half, and disruption of airline operations in the second half.
But with easing of the operational disruptions witnessed in December 2025, traffic growth is expected to rebound to 6-7 per cent next fiscal, the agency said.
“The older airports in the MMR and the NCR are operating at close to their design capacity, with combined utilisation at 87 per cent last fiscal. Also, they have limited options for large expansionary capital expenditure due to space constraints,” said Ankit Hakhu, Director, Crisil Ratings.
“The alternate airports in metros are expected to cater to 20-25 per cent of the total traffic in their regions by fiscal 2030, ensuring viability of these airports, as demand for air travel grows and connectivity to these airports improves. However, timely ramp-up will be crucial for scaling up aeronautical and non-aeronautical revenues of these airports within their first control periods.”
According to the agency, airports in other metro cities, such as Bengaluru and Hyderabad, have room for expansion with utilisation against design capacity at 65 per cent last fiscal.
Globally, metro cities with multiple large airports have “done well, such as in New York/New Jersey and London”, which were operating between high to full utilisation levels of their current capacities in 2024 due to stronger passenger growth seen in these metro cities.
Published on February 24, 2026