Alternative airports that will reach a capacity of 40 million passengers by 2026: Crisil Ratings

India’s operational and future alternative airports are expected to have an annual capacity of 40 million passengers by the end of this year, with the next phase of expansions over the next four fiscal years, Crisil Ratings said.

According to the agency, these airports are poised to serve 45 to 50 million passengers annually by fiscal year 2030, driven by pent-up demand, given capacity constraints at older airports, and the expansion of catchment areas.

Moreover, airport traffic in India is expected to rise from 415 million passengers this fiscal to 580 million in fiscal 2030, at a compound annual growth rate of 8-9 percent, driven by strong economic activity, untapped demand and easing of airport capacity restrictions in select metros.

However, it will grow at a modest 0-1 percent this fiscal due to weak demand following a major aircraft crash, closure of airbases due to uncertainties along India’s western border in the first half, and disruption to airline operations in the second half.

But now that operational disruptions from December 2025 have subsided, traffic growth is expected to recover to 6-7 percent next fiscal, the agency said.

“The older airports in the MMR and NCR are operating close to their design capacity, with a combined occupancy rate of 87 percent in the last fiscal. They also have limited scope for major expansionary capital expenditure due to space constraints,” said Ankit Hakhu, director, Crisil Ratings.

“The alternative airports in the metro cities are expected to serve 20 to 25 percent of the total traffic in their regions by FY 2030, ensuring the viability of these airports as demand for air travel grows and connectivity to these airports improves. However, a timely ramp-up will be critical to scaling up the aviation and non-aeronautical revenues of these airports within their initial monitoring periods.”

According to the agency, airports in other metros such as Bengaluru and Hyderabad have room for expansion, with occupancy levels compared to design capacity standing at 65 percent last year.

Globally, metro cities with several major airports have “done well, such as New York/New Jersey and London,” operating between high and full utilization levels of their current capacity in 2024 due to stronger passenger growth in these metros.

Published on February 24, 2026