Pune airport was most profitable in FY21; Mumbai, Delhi biggest lossmakers

Pune airport was India’s most profitable last year, staying in the top five for the third year in a row, while Mumbai and Delhi airports posted the biggest losses, as pandemic-related restrictions overwhelmed the sector, limiting air travel and grounding aircraft.

Earnings data for 136 airports in India showed that they collectively posted losses of Rs 2,882.74 crore in FY21, widening from a loss of Rs 80.18 crore in FY20 and a loss of Rs 465.91 crore in FY19 and reflecting the impact of the pandemic.

The airport at Pune, which is operated by the Indian Air Force with the Airports Authority of India managing the civil enclave, posted a profit of 16.09 crore, according to government data. The airport is currently not operating at full capacity due to runway repair work and expansion of the terminal.

Pune airport’s profit was barely a fraction of the earnings posted by the top-performing airport in the two years before the COVID-19 outbreak. Kolkata airport was then the driving force of profitability for AAI, reporting net income of Rs 545.07 crore in FY20 and Rs 461.19 crore in FY19.

Mumbai’s Chhatrapati Shivaji Maharaj International Airport was the worst performer with a loss of Rs 384.81 crore in FY21, the data showed. Adani Airport Holdings holds a 74 percent stake in the airport and the AAI has 26% percent, which the government is keen to sell.

New Delhi’s Indira Gandhi International Airport posted a loss of Rs 317.41 crore. The Mumbai and Delhi airports were the hardest hit by the pandemic since they were the busiest in terms of international traffic, which is yet to resume on a regular basis.

The financial year that started on April 1, 2020, began in the middle of the nationwide lockdown that was in force to curb the spread of COVID-19.

The data includes earnings for airports in Mumbai and Delhi, where AAI owns a 26 percent stake, and those in Ahmedabad, Lucknow and Mangalore, which were part of the recent privatisation drive and have been handed over to the Adani Group.

Some airports without scheduled flights that recorded losses included Danakonda in Andhra Pradesh, Daparizo and Zero in Arunachal Pradesh, Jogbani, Muzzafarpur and Jogbani in Bihar, Chakulia, Deogarh and Dalbhumgarh in Jharkhand, Akola and Solapur in Maharashtra, Kota in Rajasthan, Thanjavur and Vellore in Tamil Nadu, Warangal in Telangana and  Balurghat, Malda and Behala in West Bengal.

There were also airports owned by AAI that reported neither a profit nor a loss and have no flight operations currently.

Other profitable airports

Following Pune in the list of profitable airports last year was Juhu, which does not handle scheduled aircraft movements and recorded a profit of Rs 15.94 crore. This was on the back of increased non-scheduled movements.

Srinagar and Kanpur - both defence airports – also made the list, posting a profit of Rs 10.47 crore and Rs 6.07 crore, respectively.

Chennai, Trivandrum and Ahmedabad completed the top five lossmaking airports last year. Delhi airport was the top lossmaking airport in FY19 (Rs 111.7 crore). Aurangabad and Imphal airports figured in the top five lossmaking lists in both FY19 and FY20.

Delhi’s Safdarjung airport, which does not see any service now, recorded a loss of Rs 69.4 crore in FY20, topping the list in that year.

Belgaum and Hubbali airports in Karnataka, which attracted traffic under the regional connectivity scheme, posted losses in the past three financial years. So was the case with Kishangarh airport in Ajmer, Rajasthan, and Cuddapah airport in Andhra Pradesh, which handle only flights under the regional connectivity scheme.

It wasn’t all bad last year. Kandla airport in Gujarat turned profitable in the pandemic year after recording losses for two years prior to that, while Chandigarh airport’s loss narrowed.

AAI had envisioned using its profit to build new airports, but there will be less money available now for investments in new projects. With most airports reporting losses, it will be interesting to see how airport privatisation will be affected. There has been talk of combining two airports to sweeten offers for privatisation.