Delhi Airport Traffic PLUMMETS! GMR Airports Reveals Q2 Slump, But A HUGE New Cargo Project Ignites Hope?

Industrial Goods/Services

|

Updated on 13 Nov 2025, 04:15 pm

GMR Airports Limited reported a notable dip in passenger traffic for the second quarter of FY26. Delhi Airport, a major hub, saw a 7.5% decrease in passenger numbers, handling 17.6 million passengers compared to 19.0 million in the same quarter of the previous fiscal year. This decline was primarily attributed to disruptions arising from changes in global airspace conditions due to geopolitical events, alongside essential upgradation work on Runway 10/28. Across GMR Airports Limited's entire network, total passenger traffic saw a 3.5% year-over-year decline, with domestic traffic down 5% and international traffic remaining stable.

However, the company also announced a significant positive development: GMR Airports Limited has received a Letter of Intent to Award (LOIA) from Delhi International Airport Limited (DIAL) to develop a Cargo City at Indira Gandhi International Airport. This extensive project, covering 50.5 acres, involves financing, designing, developing, constructing, operating, managing, and maintaining the cargo facility, representing a key growth initiative.

Impact: The decline in passenger traffic may lead to short-term revenue challenges for GMR Airports. However, the development of the Cargo City is a strategic move expected to bolster non-aeronautical revenue streams and enhance operational capabilities in the long run. The runway upgradation, while causing temporary disruptions, will improve airport infrastructure for future efficiency. Impact Rating: 6/10

Difficult Terms: * **Q2 FY26**: Refers to the second quarter of India's financial year 2025-2026, typically covering the months of July, August, and September. * **YoY**: Stands for Year-over-Year, a comparison of a metric from the current period to the same period in the previous year. * **Geopolitical events**: Significant international incidents, conflicts, or political shifts between countries that can affect global operations, travel, and trade. * **Runway upgradation**: Maintenance, repair, or modernization work performed on an airport's runways to ensure safety and operational efficiency. * **Letter of Intent to Award (LOIA)**: A formal document issued by an entity to a potential contractor, indicating a serious intention to award a contract or concession, subject to final terms. * **Concession**: A formal agreement granting rights or privileges, such as the right to operate a business or service, typically by a government or public authority.