Air Cargo Growth Slows to 6.2% in FY26 as Against 10% in FY25

Why It Matters

The moderated growth signals vulnerability of India’s air‑freight sector to geopolitical shocks, while the continued shift toward high‑value, time‑critical goods highlights air cargo’s expanding role in the country’s export strategy.

Key Takeaways

• FY26 air cargo grew 6.2% to 3.963 million tonnes.
• Delhi remains top cargo hub; Chennai fastest growth at 11.7%.
• West Asia crisis cut March volumes 6%, limiting FY26 growth.
• PLI scheme fuels electronics shipments, boosting high‑value cargo.
• Domestic cargo up 7.4%, showing strong internal demand.

Pulse Analysis

India’s air‑cargo market posted a 6.2% increase in FY26, reaching 3.96 million tonnes, a noticeable deceleration from the 10.5% surge in FY25. While the sector demonstrated resilience amid global supply‑chain turbulence, the West Asia crisis in March shaved roughly 6% off monthly volumes, curbing what analysts estimate could have been an 8‑10% annual rise. This slowdown underscores how geopolitical disruptions along key trans‑shipment corridors can quickly translate into measurable revenue gaps for airlines and logistics providers.

Regional dynamics further illustrate the market’s evolution. Delhi continues to dominate as the nation’s premier cargo hub, but Chennai’s 11.7% year‑over‑year growth signals a rapid shift toward southern gateways, propelled by a surge in mobile‑phone, electronics, and engineering shipments. Hyderabad also tightened its lead over Kolkata, expanding its cargo base by more than 14,000 tonnes. The government’s Production Linked Incentive (PLI) scheme, especially for electronics manufacturing, has been a catalyst, encouraging high‑value, time‑sensitive freight such as semiconductors and automotive components to favor air transport over sea lanes.

Looking ahead, experts warn that sustained growth hinges on policy support and risk mitigation. The sector’s exposure to geopolitical volatility—exemplified by the West Asia route disruptions—calls for diversified routing and stronger bilateral air‑service agreements. With U.S. air‑freight exports already 27% above 2019 levels, expanding India’s share in global trade will rely heavily on air cargo’s ability to deliver high‑margin, fast‑turnaround goods. Proactive government incentives and infrastructure upgrades could unlock near‑double‑digit growth, positioning air freight as a cornerstone of India’s export‑driven economic agenda.