Air cargo volumes in India to see 11% growth in FY25, revenues to grow 14%

The wide aerial cargo volumes successful India is projected to witnesser steadfast maturation of astir 9-11 per cent (year-on-year) to astir 3.6-3.7 cardinal tonnes successful FY25, according to a study connected Thursday.

This maturation volition beryllium supported by 11-13 per cent enlargement successful planetary and 4-6 per cent maturation successful home cargo, according to recognition standing bureau ICRA.

The outlook connected airdrome infrastructure is “stable” with revenues apt to turn by astir 12-14 per cent YoY successful FY25, supported by the sustained betterment successful some home and planetary rider traffic, summation successful tariffs astatine immoderate of the large airports and ramp-up successful non-aeronautical revenues.

The planetary cargo volumes person seen a steadfast enlargement of 18 per cent successful the 2nd fractional of past fiscal (FY24), amid the Red Sea crisis, which started successful October 2023.

Consequently, the seaborne cargo postulation was impacted, which successful crook benefitted planetary aerial cargo traffic.

Vinay Kumar G, Vice President and Sector Head-Corporate Ratings, ICRA said that the cargo volumes were comparatively little impacted owed to Covid successful FY21, compared to rider traffic.

“Moreover, the betterment was comparatively swifter with cargo volumes recovering to 95 per cent of pre-Covid levels successful FY22 compared to 55 per cent successful rider traffic,” helium mentioned.

This was supported by higher maturation successful planetary cargo connected relationship of the export of Covid-related vaccines and higher merchandise exports successful FY22.

While the maturation successful cargo volumes has slowed down during the FY2023-H1 FY2024 period, it has bounced backmost handsomely successful the past 12 months, since the commencement of the Red Sea crisis.

According to the report, the planetary cargo volumes person accrued by 18 per cent YoY and 20 per cent YoY during the archetypal 5 period of FY25, and are expected to summation by a further 11-13 per cent YoY to interaction caller highs successful FY25.

“The recognition illustration of airdrome operators is projected to stay strong, supported by steadfast accruals and comfy liquidity,” said Kumar.