New Delhi, Aug 30 : India's air passenger traffic is projected to increase by nearly 50 per cent -- from 412 million in the last financial year (FY25) to 600 million by FY30, a report said on Saturday.

"This will fuel an exponential rise in aeronautical revenue, benefiting from both increased passenger numbers and improved per-passenger spending," Knight Frank said in a report.

The report highlighted that airports managed under the public-private partnership (PPP) model generate 87 per cent of the country's total non-aero revenue while handling 64 per cent of total traffic, reflecting PPS's model critical role and efficiency.

The ability of PPP airports to outperform their government-operated counterparts underscores the need for robust commercial strategies.

The report noted that India's largest hubs, Mumbai and Delhi airports, generate per capita non-aero revenues of $20.1 and $18.1, respectively -- nearly matching leading global benchmarks such as London Heathrow at $21.6 and Tokyo Haneda at $19.9.

Non-aero revenue streams, including retail, food and beverage, duty-free, parking, advertising, and real estate leasing, are increasingly central to financial sustainability.

With traffic set to multiply in the coming years, this diversification will become indispensable for airport operators.

'India's airports are at an inflexion point. The strong performance of PPP airports in driving non-aero revenues highlights how critical these streams are for long-term sustainability," said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

With traffic set to rise to nearly 600 million by 2030, airports must think beyond runways and embrace integrated commercial ecosystems such as aerocities. This will not only strengthen airport profitability but also create new engines of urban growth, he added.

This sharp growth in annual air passenger traffic presents both opportunities and challenges for airport operators. While capacity expansion remains vital, monetising this rising passenger base through non-aero revenue channels will be equally critical to financial sustainability, the report said.

Rajeev Vijay, Executive Director, Government and Infrastructure Advisory, Knight Frank India, said that 'The fact that Mumbai and Delhi airports are already generating per passenger non-aero revenues at par with Heathrow and Haneda demonstrates the potential of India's aviation sector."

/IANS