Cargo Volumes Set to Soar Amidst Red Sea Crisis Recovery

Cargo volumes are projected to grow by 9-11% this fiscal year, driven by strong domestic and international shipments. Despite previous slowdowns due to global economic factors and geopolitical tensions, the sector has rebounded resiliently, with steady growth anticipated in international air cargo traffic and airport infrastructure revenues.

The cargo industry is poised for significant growth, with volumes expected to rise by 9-11% this fiscal year, according to Icra. Domestic and international shipments are showing strong performance, propelling the industry forward.

In the wake of geopolitical challenges, particularly the Red Sea crisis, air cargo traffic has surged. While the global economy faced slowdowns, international cargo volumes gained momentum with an 18% increase last year.

Icra's report indicates a stable outlook for airport infrastructure, with a predicted revenue increase of 12-14% in FY25, thanks to improved passenger traffic and increased tariffs across major airports.

(With inputs from agencies.)