India’s Airport Passenger Growth Slows to 5-7% in FY2026 as ICRA Adjusts Forecast

Forecast Adjustments in Indian Airport Passenger Traffic

Passenger traffic growth at Indian airports is expected to modestly slow to a 5-7% year-over-year increase in FY2026, down from earlier projections of 7-9%. This revision reflects current operational challenges, including reduced aircraft availability and broader regional travel considerations. The forecast translates to around 430-440 million passengers expected in FY2026, up from 412 million recorded in the previous fiscal year.

Driving Factors Behind the Growth Slowdown

The tempered growth outlook follows some hurdles faced by the aviation sector, notably aircraft inspections and fleet restrictions after an air incident in mid-2025. In the first five months of FY2026, passenger traffic edged up by only 3%, signaling a cautious recovery pace.

Domestic vs. International Passenger Trends

Domestic travel is forecasted to grow between 4-6%, reaching approximately 348-355 million passengers. This marks a slowdown compared to initial growth rates observed earlier in the year. On the flip side, international travel is expected to pick up speed, with a projected growth of 7-10%, potentially accommodating 82-85 million travelers. This international demand is buoyed by increased global connectivity, rising leisure travel, and business trips.

Economic and Sector Impacts

Despite a more conservative passenger growth forecast, airport operators are poised to see revenue gains of 7-8% in FY2026. Factoring out irregular income from the prior year, adjusted growth could reach 15-16%, backed by rising passenger volumes and higher aeronautical tariffs, notably at major hubs like Delhi International Airport. Non-aeronautical revenues, such as retail and parking, are also contributing positively to overall income streams.

Air Cargo Growth Moderates

Air cargo volumes are facing a slowdown as well, with expected growth rates of 4-6% for FY2026 compared to the previous year’s 10%. The cooling demand particularly affects international cargo, largely due to weaker trade dynamics. Domestic cargo is anticipated to maintain healthier growth between 5-7%.

Investment and Infrastructure Development

The sector continues to draw significant investment, with an estimated capital expenditure exceeding Rs 1 lakh crore over the next four to five years. These funds target both new greenfield airports such as Jewar, Navi Mumbai, and Bhogapuram, as well as expansions at established facilities in cities including Bangalore, Hyderabad, and Mumbai. Upgrades by the Airports Authority of India will play a critical role in supporting future growth and passenger capacity.

Operating Margins and Financial Health

Operating margins for airport operators are expected to hold steady around 51-52% during FY2026 and FY2027, even as rising interest costs follow extensive capital investment. Nonetheless, credit profiles across operators should remain stable thanks to generally robust liquidity and profitability.

Summary Table of Key Projections for FY2026

Implications for Travelers and Transfer Services

Travelers can expect moderate growth in overall passenger numbers, especially in the domestic sector, suggesting that demand for airport transfers, taxis, and shuttle services will continue to increase steadily rather than explosively. The relatively stronger performance in international travel points to sustained demand for airport taxis and private transfers connecting key urban destinations.

With airport expansions and infrastructure investments underway, transfer services will likely benefit by engaging more customers from new or upgraded terminals, improving routing efficiency and possibly offering more premium or specialized vehicle options.

Services like GetTransfer.com are well-positioned to cater to these evolving needs by allowing users to pick the exact vehicle, from 4-seaters to luxury limousines, and review driver ratings beforehand —providing transparency and control beyond traditional booking methods. This user-friendly approach is especially helpful as airport traffic patterns evolve year to year.

Key Takeaways and Booking Insight

While statistical forecasts provide a clear indicator of growth trends, nothing beats firsthand experience in navigating airport traffic and managing transfer needs. On platforms like GetTransfer.com, travelers can hire verified drivers and vehicles at competitive prices, ensuring convenience without surprise charges or disappointments.

The extensive choice in vehicle categories and additional options make the platform a prime choice for those looking for reliability and affordability when planning journeys from airports to city centers or further destinations. Transparency in pricing and detailed vehicle information helps users book transfers with confidence and peace of mind.

Réservez votre trajet sur GetTransfer.com to experience seamless airport transfers, regardless of fluctuating travel patterns and passenger volumes.

Conclusion: Navigating Slow Yet Steady Growth

The revised ICRA forecast highlights a slowdown in India’s airport passenger growth yet emphasizes ongoing expansion fueled by international travel and infrastructure projects. Domestic growth, though moderate, still promises healthy demand for airport-related services, including taxis and private transfers. Investment in airport infrastructure is set to enhance regional airport access, indirectly benefiting urban transfer services by dispersing traffic more evenly.

For travelers aiming to optimize their experience, tools that allow exact taxi and transfer bookings, with transparent fares and driver verification, will be invaluable. Platforms such as GetTransfer.com support travelers globally by providing economical and convenient options tailored to a variety of seating needs, car types, and locations, ensuring smooth end-to-end transport.

In an environment of gradual but stable growth, staying informed and making use of transparent booking services will help users navigate the evolving landscape of taxi and airport transfers with confidence and ease.