According to the ICRA report, the international cargo volumes have seen a significant increase of 18 per cent in H2 FY2024 because of the Red Sea conflict, resulting in decline of ocean cargo traffic. The international cargo volumes have increased by 18% year-on-year and 20% year-on-year during the fiscal year 2024-25.
Akash Tyagi
The projected growth of air cargo volumes in India in FY25 is likely to rise to 11 per cent year-on-year, to stand around 3.6 to 3.7 million tonnes, reported ICRA, a credit rating agency. This significant growth will be assisted by 6% growth in the domestic cargo and close to 13% in international cargo. The international volumes have seen a marginal year-on-year rise of 1 per cent in H1 FY2024 mainly impacted by the slowdown in global economy and geopolitical conflicts.
However, the international cargo volumes have seen a significant increase of 18 per cent in H2 FY2024 because of the Red Sea conflict, resulting in decline of ocean cargo traffic. In FY2024, an increase of 7 per cent year-on-year was witnessed for the total air cargo handled at Indian airports, which stood at 33.7 lakh tonnes.
“The cargo volumes were relatively less impacted due to Covid-19 in FY2021, compared to passenger traffic. Moreover, the recovery was relatively swifter with cargo volumes recovering to 95 per cent of pre-Covid-19 levels in FY2022 compared to 55 per cent in passenger traffic. This was supported by higher growth in international cargo on account of the export of Covid-19-related vaccines and merchandise exports in FY2022. While the growth in cargo volumes slowed down during the FY2023-H1 FY2024 period, it has bounced back handsomely in the past 12 months, since the beginning of the Red Sea crisis. The international cargo volumes have increased by 18 per cent YoY and 20 per cent year-on-year during FY2025 and are expected to increase by a further 11 to 13 per cent year-on-year to touch new highs in FY2025,” Vinay Kumar G, Vice President & Sector Head, Corporate Ratings, ICRA, said.
On the airport operators’ performance during the period, Kumar added, “ICRA’s outlook on airport infrastructure is stable with revenues of ICRA’s sample set 1 likely to surge around 12 to 14 per cent YoY in FY2025, assisted by the sustained growth in both domestic and international passenger traffic, increase in tariffs at some of the major airports and ramp-up in non-aeronautical revenues. With healthy profitability margins, the debt coverage metrics are expected to remain stable with DSCR and interest cover above two times and four times, respectively in the medium term, despite higher interest outgo with the commercialisation of the capex programme at some of the key airports. The credit profile of airport operators is projected to remain strong, supported by healthy accruals and comfortable liquidity.”
