Skyward Surge: Indian Air Traffic Set for Rapid Growth by FY27

Air passenger traffic in India is projected to grow at a 9% CAGR between FY2025 and FY2027, reaching 485 million by FY27, according to CareEdge. Strong demand and capacity expansions in airports and airlines drive this growth. Although some challenges persist, the sector's recovery continues robustly.

India's air passenger traffic is on track to rise at a compounded annual growth rate of 9% between fiscal years 2025 and 2027, with volumes expected to hit approximately 485 million by FY27, according to a new report from ratings agency CareEdge.

The report highlights that international passenger traffic is likely to experience quicker growth, propelled by the addition of wide-body aircraft starting FY26. Meanwhile, domestic traffic will continue its consistent growth, building on a strong existing base.

Despite some setbacks, including aircraft delivery delays and weather-related disruptions, the aviation sector's rebound remains strong, underscored by significant infrastructure investments and increased air travel demand.