KIA has shown significant growth in its non-aero revenue in recent years

The Kempegowda International Airport (KIA) has seen a 28% increase in its non-aeronautical revenue over a two year period between FY 2023 and FY 2025.

According to a recent report, “Beyond the Runway- Scope of Non-Aero Revenue and Aerocities in India”, KIA has shown significant growth in its non-aeronautical revenue in recent years.

“In FY 2023, non-aero revenue stood at ₹8.01 billion, and this rose to ₹10.29 billion in FY 2025—an increase of 28% over two years,” states the report by Knight Frank India, a real estate consultancy in association with National Real Estate Development Council (NAREDCO). The report attributes the growth to the opening up of the airport’s Terminal 2 building.

“This growth was largely driven by the opening of Terminal 2, which created new commercial opportunities, particularly in retail and food and beverage, while lounges and duty-free outlets delivered performance that exceeded expectations,” it stated.

The 2,55,661-sq. m Terminal 2, inaugurated by Prime Minister Narendra Modi on November 11, 2022, became operational on January 15, 2023.

The report stated that, beyond terminal-based revenue, Bangalore International Airport Limited (BIAL), which operates KIA, is actively advancing its aeropolis strategy, which includes the development of Maintenance, Repair, and Overhaul (MRO) facilities.

“In addition, BIAL is leveraging its extensive land holdings for commercial development, aiming to build a multi-use ecosystem around the airport that supports long-term revenue diversification,” it added.

The report said that India’s two largest airports, Mumbai and Delhi, generate per capita non-aero revenues of $20.1 and $18.1, respectively, which is the highest among Indian airports, followed by Cochin ($13.5), Hyderabad ($8.4) and KIA ($8.1).

“Mumbai and Delhi are approaching international benchmarks like London Heathrow ( $21.6) and Tokyo Haneda ($19.9), signalling strong performance in duty-free, retail, food and beverage, and commercial services. These figures demonstrate that India’s top-tier airports are successfully evolving into commercial hubs, comparable to leading global peers,” it said.

Globally Singapore’s Changi airport is the leader generating a per capita non-aero revenue of $26.

“Airports in Singapore and Dubai International Airport still set the gold standard in revenue optimization, driven by high passenger spending and world-class infrastructure. Airports like Cochin, Hyderabad, and Bengaluru are in a growth phase, benefiting from rising traffic and improved terminal offerings,” it said.