How are GMR Airports boosting profits?

GMR Airports is enhancing profits by scaling up retail operations, re-monetizing commercial spaces, and developing airport-adjacent businesses like aerocities.

What is the impact of new regulations on Indian airports?

New Flight Duty Time Limitations (FDTL) for pilots can constrain airline capacity, potentially slowing passenger traffic growth and making non-aeronautical revenues even more critical for airports.

When will Navi Mumbai and Noida International Airports open?

Navi Mumbai and Noida International Airports are scheduled to open in 2026.

Home / Business and Economy / Airports: From Runways to Retail Riches

Airports: From Runways to Retail Riches

19 Jan

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Summary

Non-aeronautical revenues now drive 80% of airport operator valuations.
Non-aero revenues are projected to grow significantly by FY28.
New airports in Navi Mumbai, Noida, and Visakhapatnam open in 2026.

Indian airport operators are increasingly turning terminals into lucrative retail destinations, a significant shift from their traditional utility model. Non-aeronautical revenues, including retail, food, and duty-free sales, now constitute 40-50% of total airport income and are the primary drivers behind 80% of operator valuations, according to Jefferies.

With aeronautical charges capped, airports are focusing on non-aero streams for growth. These revenues are projected to surge from Rs 2,900 crore in FY25 to Rs 6,300 crore by FY28 for GMR's portfolio alone. This strategic pivot is further emphasized by the upcoming openings of Navi Mumbai, Noida, and Bhogapuram airports in 2026, designed as retail and commercial hubs.

Despite potential headwinds from airline capacity constraints affecting passenger traffic, the focus on increased per-passenger spending and airport-adjacent real estate development is expected to sustain growth. The government's plan for further airport privatizations in 2026 also presents new opportunities for this retail-centric business model.