India Grapples With Massive Losses At Eighty One Airports As Aai Struggles To Overcome Rs 10,852 Crore Deficit In The Past Decade Amid Ongoing Financial Struggles

Published on August 7, 2025 |

By: TTW News Desk

In India, nan aviation assemblage is grappling pinch a terrible economical situation arsenic nan 81 airports operated by nan Airports Authority of India (AAI) cumulatively person a gaping shortage of Rs 10,852 crores complete nan past decade. AAIs’ relentless attempts to amended location connections arsenic good arsenic upgrade nan airports’ infrastructure person not been capable to mitigate nan losses which stem from nan constricted number of passengers, precocious operational expenses, and debased gross streams. The ongoing financial difficulties uncover nan grade of nan problem AAIs’ wide web of airports poses from a sustainability and businesslike operational standpoint, which is simply a increasing load connected nan country’s aviation sector.

India’s aviation sector, erstwhile heralded arsenic a awesome of progress, is facing important financial difficulties, pinch 81 airports operated by nan Airports Authority of India (AAI) reporting staggering losses complete nan past decade. These airports person collectively incurred a shortage of Rs 10,852.9 crore, an rumor that has drawn nan attraction of some authorities officials and manufacture experts. The expanding financial strain connected these airports is raising concerns astir nan early of India’s aviation infrastructure and its semipermanent viability.

AAI’s Financial Woes: A Deepening Crisis

The AAI has been astatine nan forefront of managing and processing India’s airdrome infrastructure. However, nan financial wellness of its airports has deteriorated, pinch galore airports incurring dense losses contempt important investments successful infrastructure. Over nan past 10 years, 81 airports nether AAI’s purview person collectively accumulated a nonaccomplishment of Rs 10,852.9 crore. The airports that are struggling financially see immoderate of India’s busiest and astir salient airports, further exacerbating nan challenges faced by nan aviation sector.

While immoderate of these airports person shown promise, nan mostly person grounded to make capable gross to screen their operational costs. Factors specified arsenic debased rider traffic, precocious operational expenses, and outdated infrastructure person contributed to nan financial instability faced by these airports. The business is worsened by nan ongoing emergence successful aviation substance costs and expanding attraction expenses, which are straining nan already vulnerable financial instauration of these airports.

Key Loss-Making Airports Across India

Several airports are peculiarly hard-hit by nan financial crisis. Among these, Safdarjung Airport successful Delhi stands out, pinch losses amounting to Rs 673.91 crore. Other airports facing important financial setbacks see Agartala (Rs 605.23 crore), Hyderabad (Rs 564.97 crore), Dehradun (Rs 488.07 crore), and Vijayawada (Rs 483.69 crore). These airports, which are important to location connectivity, are struggling to meet nan increasing request for aerial travel.

In summation to these well-known airports, smaller airports successful India are besides facing financial challenges. Bhopal (Rs 480.43 crore), Aurangabad (Rs 447.83 crore), and Tirupati (Rs 363.71 crore) are among nan airports that person reported ample losses, further highlighting nan systemic financial issues plaguing nan sector.

Karnataka’s Airports: A Case Study successful Financial Strain

Karnataka has been peculiarly affected by nan financial difficulties of its location airports. Four airports successful nan state—Belagavi, Hubballi, Kalaburgi, and Mysuru—have reported a mixed nonaccomplishment of Rs 560.26 crore betwixt 2015-16 and 2024-25. The largest losses were incurred by Hubballi, which reported Rs 226.45 crore successful losses, followed by Belagavi pinch Rs 212.24 crore. Kalaburgi and Mysuru airports person besides faced important financial setbacks, pinch losses amounting to Rs 48.54 crore and Rs 73.03 crore, respectively.

The struggle of Karnataka’s airports reflects a broader inclination seen crossed nan country, wherever location airports are incapable to pull capable rider postulation to screen their operational costs. Despite nan government’s efforts to amended location connectivity done nan UDAN (Ude Desh ka Aam Naagrik) scheme, these airports stay financially unstable, which calls for a much strategical attack to managing location airdrome operations.

The Impact of Low Traffic and High Operational Costs

One of nan superior reasons for nan financial instability astatine galore of these airports is debased rider traffic. Airports located successful smaller cities aliases distant regions struggle to make nan gross required to prolong operations. This is particularly existent for airports successful little populated areas, wherever aerial recreation is not arsenic frequent, and nan costs of operating an airdrome is importantly higher than nan gross generated.

Additionally, precocious operational costs proceed to beryllium a awesome situation for AAI-operated airports. These costs see maintenance, staffing, security, and different administrative expenses, which, successful galore cases, transcend nan income generated from summons income and different gross streams. The rising costs of aviation substance and nan request for changeless infrastructure updates only adhd to nan burden, making it progressively difficult for airports to execute financial sustainability.

Infrastructure Development Amid Financial Struggles

Despite nan ongoing financial challenges, important efforts person been made to upgrade airdrome infrastructure crossed India. New terminals, enhanced rider facilities, and amended aerial postulation power systems person been developed to amended nan wide rider experience. However, these upgrades travel astatine a precocious cost, and their semipermanent effectiveness remains uncertain fixed nan ongoing financial strain connected nan airports.

The Agartala Airport, for example, precocious completed nan building of a caller terminal building astatine a costs of Rs 318.41 crore. Similarly, nan Dehradun Airport underwent important redevelopment, which included nan summation of a caller terminal tin of handling 3,240 passengers during highest hours. While these upgrades are basal for enhancing nan rider experience, they besides lend to nan increasing financial shortage faced by nan airports.

Moreover, nan building of a caller integrated terminal building astatine Vijayawada Airport, costing Rs 611 crore, is expected to summation rider capacity significantly. While these infrastructure projects are captious for nan maturation of India’s aviation sector, they besides item nan ongoing financial struggles faced by galore airports successful nan country.

The Need for Financial Restructuring and Public-Private Partnerships

To reside nan financial challenges faced by AAI and its airports, location is simply a increasing statement that a financial restructuring scheme is urgently needed. This scheme should attraction connected improving operational efficiency, reducing unnecessary expenses, and uncovering caller gross streams to guarantee semipermanent sustainability.

One imaginable solution is to research public-private partnerships (PPPs), which could thief trim nan financial load connected AAI. By involving backstage assemblage companies successful nan guidance and cognition of airports, AAI could pat into further resources and expertise to amended airdrome operations. PPPs could besides thief boost rider services, pull much airlines, and amended nan wide ratio of airdrome operations, starring to higher gross generation.

Regional connectivity schemes for illustration UDAN should besides beryllium strengthened to amended rider postulation astatine location airports. By expanding nan number of flights to and from underserved airports, nan authorities tin thief boost traffic, making these airports much financially viable. Additionally, nan attraction connected improving connectivity tin thief pull visitors and business travelers, which would further support nan economical improvement of these regions.

India’s aviation web is clocking a troubling Rs 10,852 crore nonaccomplishment astatine 81 Airports Authority of India (AAI) airports dispersed crossed nan past 10 years. Low rider counts, steep operating costs, and lagging gross streams are pushing nan deficit. AAI’s persistent reddish ink exposes nan unit of moving India’s sprawling airdrome system.

As AAI confronts these airport-level losses, nan assemblage hits a decisive moment. Decade-wide deficits underscore nan lawsuit for swift, system-wide reforms and targeted capital. Programs for illustration UDAN and ongoing infrastructure push connection committedness for stronger volumes, yet offsetting these losses demands a bigger picture: sharper management, tighter costs, and caller approaches for illustration public-private partnerships.

The aviation assemblage tin still constitute a turnaround story, boosting connectivity and rider service. But without speedy reforms and decisive investment, nan sustainability of India’s airports is astatine risk, and nan Financial headwinds are improbable to fto up.