The base case presented in Fitch’s report assumes that traffic at GHIAL will rebound to pre-pandemic levels before the conclusion of 2023.
Published Date – 06:41 PM, Fri – 13 October 23
Hyderabad: Fitch, a provider of credit ratings and research for global capital markets, has projected a positive outlook for GMR Hyderabad International Airport Limited (GHIAL) indicating GHIAL is set to witness a substantial increase in its total passenger traffic for the fiscal year 2024.
According to the report, Fitch expects the total passenger traffic to surge to 24 million in FY24, compared to the 21 million recorded in the fiscal year (FY23). In FY23, the airport managed to bounce back remarkably, with passenger traffic reaching 97 per cent of the levels seen in FY20, thanks to a strong resurgence in domestic travelers. Domestic passengers have consistently constituted a significant portion, around 80 per cent, of the total passenger mix between FY18 and FY20.
The base case presented in Fitch’s report assumes that traffic at GHIAL will rebound to pre-pandemic levels before the conclusion of 2023. Under this scenario, the airport is expected to reach its maximum passenger capacity of 34 million by FY26. The rating case also assumes a return to pre-pandemic traffic levels by the end of 2023. However, in this scenario, growth beyond 2023 is predicted to be slower, with GHIAL reaching its maximum capacity by FY28.
According to Fitch, GHIAL experienced a remarkable increase in revenue, up by approximately 60 per cent to Rs 19.1 billion in FY23, compared to Rs 11.7 billion in FY22. The findings from Fitch’s report come as part of their evaluation, as mentioned in their report titled ‘Fitch Affirms GMR Hyderabad International Airport at ‘BB ‘; Outlook Stable.’
