Although higher financing and depreciating expenses are resulting in losses, no-aero verticals account for the majority of the airport’s revenue generation at GMR airport. In terms of both domestic and international passengers, India’s largest airport is Indira Gandhi International Airport in the nation’s capital. During the fog period, Delhi International Airport Limited, which is owned by GMR Airports and has investments from Groupe ADP was in operation. The airport reported a loss of INR 127.7 crore for the third quarter of FY24 which ran from October to December, despite total revenue of INR 1322.9 crore and an operational profit of INR 409.9 crore. The loss was attributed to increased financing and depreciation expenses.
At INR 759.7 crore, non-aero revenue was the main source of income. This represents 57.4% of the airport’s total revenue for the previous quarter. The income has increased by 12.5% from Q3-FY23 and by 8% from the previous quarter. The mall’s significance in an airport concept is highlighted by the fact that its non-aero income is 2.8 times greater than its aero income. Aero revenue reached INR 269.9 crores, growing 7.2 % year over year. Typically, the aero revenue consists of the User Development Fee, airline landing fees, terminal, gate, and service usage fees, as well as the rental of airline terminal space. Rentals, retails, food and beverages, duty-free stores, advertising and parking lots make up the nor-aero revenue.
There were 18.8 million passengers at Delhi Airport, an 8.5% YoY increase in air traffic. Spending on retail, food and beverages, among other things, increased as a result of an increase in passenger traffic. The retail and duty-free segments contributed to the 11% YoY growth in no-aero revenue, which was up 13% YoY. Aerocity rentals, which were up 39% to INR 195.6 crore in the most recent quarter, also bring in money for the airport. Delhi’s non-aero revenue for the nine months that ended in December was 21.7 billion rupees, of which 19% came from space rentals and 28% from retail. From advertising, more than 1.5 billion rupees were made.
For the nine months ending in December 2023, the average duty-free expenditure per passenger was INR 1005. The non-aero income per passenger at the airports in Hyderabad and Delhi was INR 360. For Delhi, the GMR group has not disclosed a separate per-passenger revenue.
Increasing non-aero revenue is a common practice at airports across the globe, as they are significant capital projects. The airport developer considers long-term concessions, city-side development, and no-aero business as sources of revenue to offset development costs. According to the 2019 edition of the ACI Airport Economics report, non-zero revenue is approximately 40% worldwide.
This is not unique to Singapore Changi or Dubai, and as Delhi attempts to join this elite, the airport ought to make more of an effort to draw in international food and retail brands to make the trip more appealing. Cost and connection time are not factors that make an airport appealing; additional shopping, dining options, and duty-free shopping are necessary without sacrificing the quality of service provided at security checkpoints, check-in and waiting areas.
