CRISIL Ratings estimates that airports in New Delhi, Mumbai, Hyderabad and Bengaluru, which cater to nearly 55 per cent of IndiaÂ’s air traffic, and which are operating near-full capacity, will need to spend heavily on expansion through 2021. Yet, their credit quality will remain healthy because of business model strength backed by robust traffic growth and predictable cash flows under a regulated tariff framework.
Airline passenger traffic in India grew 20 per cent in fiscal 2017, which was a big leap over the sedate 9 per cent average seen since 2011. Bengaluru and Hyderabad airports have clocked even faster growth of over 24 per cent. Rising private consumption and healthy economic growth would continue to provide tailwind to traffic growth at airports.