Mall Or Airport? Delhi Airport's Non-Aero Earnings Are Nearly Three Times Its Aero Revenue

(MENAFN- Live Mint) GMR Airports Limited, the largest private airport operator in India, declared its Q3-FY25 and 9M-FY25 results on January 28, 2025. The entity, which counts France's Groupe ADP among its investors, reported a loss of ₹49 crore in the last quarter, largely driven by finance costs and debt burden, which are part and parcel of the infrastructure business as it invests in multiple assets worldwide.

The earnings come amid record-breaking passenger numbers at Delhi and Hyderabad, the two largest airports in its portfolio.

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Delhi, the largest airport in India, saw passenger traffic grow by 8.3% in Q3-FY25, while revenues rose 8.1% in the same quarter. The Delhi Airport handled over 20 million passengers in the October to December quarter, its best-ever performance.

For the first nine months of the year, Delhi airport handled 17% of all domestic traffic in India and 28% of all international traffic, further strengthening its position as the international gateway and Indian hub. Air India's expansion will further strengthen the airport's position as a regional hub.

Airport or mall or restaurant?

The airport reported a gross income of ₹3,775.3 crore for the nine months ended December. A cursory glance at this number reveals some interesting facts.

A large chunk of the revenues-roughly 57%-is generated by non-aero activities . In other words, Delhi Airport makes more from retail and duty-free sales, rentals, advertisements, food & beverages, cargo and ground handling. Granted cargo and ground handling are aeronautical activites, but these are globally classified as non-aero.

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