Mumbai’s Chhatrapati Shivaji Maharaj International Airport will close Terminal 1 for a four-year redevelopment starting October 25, 2026. This major infrastructure project involves demolishing the 84-year-old facility, which will require cutting 265 weekly international flight slots at Terminal 2 to manage the traffic shift. The move comes as operator MIAL navigates capacity constraints and prepares for future competition.
Chhatrapati Shivaji Maharaj International Airport (CSMIA) is preparing for a significant operational overhaul as Mumbai International Airport Limited (MIAL) launches a comprehensive redevelopment of Terminal 1. Starting October 25, 2026, the 84-year-old terminal will close to flight operations to allow for complete demolition and reconstruction. The project is expected to continue until 2029-30, marking a major transformation in the city’s aviation infrastructure aimed at replacing aging facilities with modern transit and baggage systems.
Operational Impact and Traffic Shifts
The closure of Terminal 1 necessitates a complex realignment of flight schedules to accommodate domestic traffic at the remaining facilities. To facilitate this transition, MIAL has mandated a reduction of 265 weekly international departure slots at Terminal 2, representing a 34.4% cut in those specific operations. While airport authorities state that 91% of total passenger traffic is expected to remain unaffected, the reduction in international capacity and the relocation of millions of domestic passengers present a significant logistical challenge for airlines operating in Mumbai.
Financing and Infrastructure Strategy
This infrastructure drive is backed by substantial capital allocation from the parent entity, Adani Airport Holdings Limited (AAHL). The company recently raised approximately ₹9,825 crore ($1 billion) in primary equity from global investors, including Temasek, BlackRock, and Alpha Wave Global. This fundraising supports the group's broader infrastructure expansion plans. Additionally, MIAL is separately investing around ₹2,000 crore into airside projects, which are designed to increase peak-hour capacity to between 52 and 55 aircraft movements, aiming to offset some of the operational pressure caused by the T1 shutdown.
Capacity Risks and Future Outlook
From an operational standpoint, the project temporarily reduces the airport’s standalone passenger capacity from 55 million to 40 million annually. This contraction places increased reliance on Terminal 2 and creates potential bottlenecks during peak travel periods. Furthermore, the timing of this redevelopment coincides with the ongoing development of the new Navi Mumbai International Airport. The market will be watching whether MIAL can maintain service levels and slot efficiency during this four-year transition period without losing significant market share or facing excessive operational friction. The primary monitorable for investors and stakeholders will be the management's ability to execute this high-stakes construction phase while minimizing disruption to airline profitability and passenger experience.