India’s overall air cargo volumes are projected to see healthy growth of 9-11 per cent year on year (YoY) to 3.6-3.7 million tonnes in fiscal 2024-25 (FY25), supported by 11-13 per cent expansion in international and 4-6 per cent growth in domestic cargo, according to rating agency ICRA.
The international cargo volumes had seen a muted YoY rise of 1 per cent in the first half (H1) of FY24 on the back of the slowdown in the global economy and geopolitical conflicts.
However, international cargo volumes witnessed a healthy expansion of 18 per cent in H2 FY24 amid the Red Sea crisis, which started in October 2023. Consequently, the seaborne cargo traffic was affected, which in turn benefitted international air cargo traffic.
“ICRA’s outlook on [India’s] airport infrastructure is stable, with revenues of ICRA’s sample set likely to grow by around 12-14 per cent YoY in FY25, supported by the sustained improvement in both domestic and international passenger traffic, increase in tariffs at some of the major airports and ramp-up in non-aeronautical revenues,” said Vinay Kumar G, vice president and sector head, corporate ratings, ICRA, in a release.
The credit profile of airport operators is projected to remain strong, supported by healthy accruals and comfortable liquidity, he added.
