Industry Odisha Bureau, Aug 31: India’s airport operators are confronting a mismatch between rising infrastructure capacity and airline availability. Fleet shortages, grounded aircraft and geopolitical disruptions are limiting passenger growth this year. Underlying demand for air travel across India nonetheless remains structurally strong and intact. Operators are therefore diversifying revenue while awaiting airline capacity to catch up.
GMR’s annual report pegged Indian airline losses at ₹32,000-34,000 crore in FY26. That compares with roughly ₹5,500 crore in losses reported during FY25. Losses are expected to widen further to ₹36,000-38,000 crore in FY27. Rupee depreciation, elevated fuel prices and higher lease rentals drove pressures.
IndiGo and the Air India group together dominate over 90% of India’s domestic market. They reported FY26 losses exceeding ₹22,000 crore and nearly ₹2,400 crore respectively. Roughly 99 aircraft remained grounded across selected airlines by March-end. Budget-carrier restructuring has further reduced domestic capacity utilisation at airports nationwide.
GMR’s own airports handled 121.6 million passengers in FY26, barely growing. That represented just 1% growth over the previous year’s 120.6 million. Cargo proved far more resilient, rising to 1.33 million tonnes handled. GMR Aero Technic, its MRO arm, grew revenue 26% to ₹676.9 crore.
That diversification strategy supported GMR’s broader financial performance during the year. Gross income rose 40% to ₹15,200.8 crore across its operations. Consolidated profit turned positive at ₹472.4 crore, reversing a prior-year loss. GMR is now evaluating regional airport privatisation and new international concession opportunities.
Noida International Airport, newly operational, is prioritising stable and reliable operations first. Zurich Airport’s chief executive cited a gradual ramp-up amid geopolitical headwinds. Noida is expected to post a negative contribution through 2026. Zurich projects the airport reaching operational break-even sometime during 2027.
Bengaluru offers a useful counterpoint, handling 44.47 million passengers with 6.2% growth. International traffic there climbed 23.9%, while profit jumped more than 86%. This suggests underlying passenger demand remains genuinely intact across much of India. Airline capacity, rather than demand itself, increasingly determines what airports capture.
GMR’s consolidated net debt stood near ₹34,000 crore as of Q1FY27. The company is separately seeking approval for ₹5,000 crore and ₹1,500 crore fundraisings. Hyderabad and Bengaluru airports together plan nearly ₹26,000 crore of expansion. India’s long-term aviation opportunity remains intact, but disciplined capital allocation now matters most.
