The Airports Authority of India (AAI) has returned to profitability, generating a profit of ₹3,400 crores in the fiscal year ending in March, thanks to a surge in domestic air traffic. This marks the first time AAI has reported a profit since the onset of the COVID-19 pandemic, which severely impacted air travel and the aviation industry as a whole.
In the previous two financial years, 2020-21 and 2021-22, AAI had reported losses. The loss for the fiscal year ending March 2022 was ₹803.72 crore, while it stood at ₹3,176.12 crore for the financial year ending March 2021. These figures exclude exceptional and extraordinary items and taxes.
According to a reliable source, AAI has recorded a provisional profit of ₹3,400 crore for the 2022-23 financial year. The final figure will be confirmed after the audit of the financial results.
The source attributed the positive performance primarily to the substantial growth in domestic air traffic. In 2022, domestic air passenger traffic witnessed a remarkable increase of 47.05%, reaching 12.32 crore passengers compared to 8.38 crore in the previous year. Official data shows that passenger numbers further rose by 51.70% to 3.75 crore in the first three months of 2023, compared to 2.47 crore during the same period in the previous year.
In the financial year 2021-22, AAI reported a meager profit of ₹8.76 crores, including exceptional items and tax.
It is worth noting that the government waived the compulsory dividend payment requirement in the fiscal year ending March 2022. AAI had requested this waiver in exchange for the government waiving Air India’s dividend, which was done before the sale of the loss-making carrier to the Tata Group in January 2022.
AAI is responsible for managing 137 airports, including 24 international and 80 domestic airports in India. Additionally, it provides Air Traffic Management Services (ATMS) across the entire Indian airspace and adjacent oceanic areas. The recent return to profitability reflects the positive impact of the recovery in domestic air travel, highlighting the resilience of AAI and the aviation sector as a whole.
