How PPP Airports Are Powering India’s Travel Boom to Six Hundred Flyers by 2030

Published on August 30, 2025

By: Tuhin Sarkar

India’s aviation sector is entering a new phase. A Knight Frank India report highlights how non-aero revenue and aerocities will shape the future of airports. With traffic projected to reach 600 million passengers by 2030, airports must move beyond runways and embrace commercial ecosystems.

PPP Airports Driving Growth

Airports managed under the public-private partnership model are outperforming government-run airports. These PPP airports generate 87% of India’s non-aero revenue while handling 64% of passenger traffic. The figures reflect strong efficiency and the success of commercial strategies. By diversifying income through retail, duty-free, food, parking, and advertising, PPP airports are strengthening financial stability. Their performance highlights the importance of private sector involvement in the country’s aviation growth.

Why Non-Aero Revenue Matters

Non-aero revenue is becoming central to airport sustainability. It reduces dependence on aeronautical charges and gives airports room to innovate. Food and beverage outlets, duty-free shops, and real estate leasing now play a big role in income generation. With passenger traffic set to multiply, this shift is no longer optional. Airports must balance infrastructure investment with new commercial strategies. The growing importance of non-aero revenue shows that airports are evolving into business hubs as much as transport centres.

India’s Position on Global Benchmarks

India’s leading airports are now comparable with the best in the world. Mumbai generates USD 20.1 in non-aero revenue per passenger, while Delhi generates USD 18.1. These figures nearly match Heathrow at USD 21.6 and Tokyo Haneda at USD 19.9. This performance shows Indian airports are capable of world-class commercial results. High passenger spending and international traffic are supporting these numbers. For global investors, this parity is proof of maturity and signals long-term opportunity in India’s aviation market.

Passenger Growth Outlook

India’s air passenger traffic is projected to rise from 412 million in FY 2025 to 600 million by 2030. This rapid growth will present both opportunities and challenges. Capacity expansion remains essential, but revenue models must evolve in parallel. Operators cannot rely on passenger fees alone. By boosting non-aero income, airports can offset rising costs and invest in modernisation. The surge in demand, driven by rising incomes, middle-class expansion, and deeper connectivity, reinforces the urgency of non-aero strategies.

Structural Drivers of Expansion

Several factors are supporting this evolution. Rising disposable incomes are boosting travel demand. Regional connectivity schemes are expanding access to smaller cities. Private sector investment is modernising infrastructure and increasing efficiency. Integration with global networks is also raising India’s profile as a travel hub. Together, these elements are creating an environment where airports can grow beyond traditional models. Non-aero revenues are no longer secondary—they are becoming central levers for long-term growth.

Aerocities as Growth Catalysts

Aerocities are emerging as game changers for India’s airports. These urban ecosystems built around airports integrate offices, hotels, retail, entertainment, logistics, and convention centres. Aerocities turn airports into vibrant economic hubs, attracting both travellers and local residents. They support job creation, tourism, and urban development. For operators, they mean steady income beyond flights. For governments, they are engines of regional growth. Aerocity planning allows airports to become magnets for investment, commerce, and innovation.

Unlocking the Revenue Potential

The report highlights the vast opportunity from non-aero revenue. Even a modest rise of USD 1 per passenger could add USD 29.5 billion annually by 2030. This is a 26% jump from current levels. The incentive for operators to invest in retail, dining, and entertainment is clear. Premium shopping zones, food courts, and leisure spaces can capture both passengers and visitors. Airports are well placed to monetise this demand by creating destinations in their own right.

Industry Voices on Future Growth

Industry leaders stress the transformative potential of non-aero revenues. Shishir Baijal, Chairman of Knight Frank India, said India’s airports are at an inflection point. He noted that non-aero revenues will be essential for long-term sustainability. Dr. Rajeev Vijay highlighted how global investors are eyeing aerocity-led opportunities. He called aerocities powerful tools to transform airports into economic powerhouses. G Hari Babu of NAREDCO said airports are no longer transit hubs but integrated economic zones. Their development will stimulate allied sectors from hotels to retail.

The Next Phase of India’s Aviation Sector

The findings of the Knight Frank report point to a holistic growth model. Airports must combine aviation with commerce and urban development. PPP airports are already showing the way by outperforming government-run facilities. Passenger growth is expected to multiply, and aerocity development is set to accelerate. The future of India’s airports lies in embracing integrated ecosystems. By expanding non-aero revenues and building aerocities, India can create global-standard hubs that drive both aviation success and urban growth.