KANNUR: The Kannur International Airport, once envisioned as a game-changer for north Malabar’s aviation sector, has suffered an accumulated loss of Rs 742.77 crore since its inauguration in December 2018. Despite efforts to stabilise operations, persistent financial and operational challenges have resulted in consecutive annual losses.
According to its financial report, as on March 31, 2024, Kannur Airport remained in a precarious financial position. Officials attribute the setback primarily to the Union government’s refusal to grant the Point of Call status, restricting its access to key international flight routes.
“The Rs 742.77 crore loss is an accumulation from previous years. However, we expect to break-even in this financial year. By 2025-26, we are targeting a turnover of Rs 250 crore, with a cash reserve of around `70 crore,” Kannur airport managing director Dinesh Kumar C told TNIE. He also expressed optimism over securing the Point of Call status.
“We are in regular discussions with the Ministry of Civil Aviation and expect a positive outcome soon. In the 2024-25 fiscal, passenger traffic grew by 7% compared to calendar year 2023, with international traffic witnessing a remarkable 14% increase,” Dinesh noted.
Meanwhile, the Chief Minister’s Office (CMO) stated that the state government is actively pushing for the airport’s inclusion in the Point of Call framework. “At every MP conference, the chief minister raises this issue. Several Kerala MPs have brought it up in Parliament. Kannur airport can achieve its full potential only with the Point of Call status, and our efforts are focused on securing it,” the CMO stated.
However, the Ministry of Civil aviation has maintained its position that only metro cities will be granted Point of Call privileges. This stance has fuelled political protests, with the CPM and expatriate groups voicing strong opposition.
CPM state secretary M V Govindan accused the Union government of discriminating against Kerala.
“The Modi government is waging an economic war on Kerala. They are falsely portraying Kannur as a rural airport to justify denying the Point of Call status. This is pure political vendetta,” he said.
Despite the financial strain, the Kerala government has stepped in to support Kannur airport. In the 2025-26 budget, Rs 526.63 crore has been allocated for the airport’s infrastructure development, including land acquisition. An estimated Rs 75.51 crore has also been earmarked for further expansion and operational improvements.
Currently, Kannur airport handles an average of 35 daily departures, including 14-15 international flights, primarily to Abu Dhabi. Domestically, Bengaluru remains the most frequent destination, with three daily departures, followed by Mumbai, which has 10 weekly flights. However, these numbers remain significantly lower than those of other international airports in Kerala.
Business leaders in the region argue that Kannur airport is yet to make a significant economic impact. “We haven’t seen any major benefit arising from Kannur airport. It has failed to establish itself as a key commercial hub. Even today, both residents and businesses in Malabar rely on Kozhikode and Kochi airports. An international airport without the Point of Call status is practically ineffective,” said an official from the North Malabar Chamber of Commerce, on condition of anonymity.
Criticism has also been directed at the airport’s flight scheduling. The in-demand Mumbai service, for instance, operates at 1.20am, prompting passengers to opt for Kozhikode airport instead.
Despite these hurdles, Kannur airport recently received international recognition, winning the prestigious Airports Council International World’s “best airport award” in the “under 2 million passengers per annum” category as part of the 2024 Airport Service Quality survey.
Govt support
Despite the financial strain, the state govt has stepped in to support the airport
In the 2025-26 budget, Rs 526.63 crore has been allocated for the airport’s infrastructure development
An estimated Rs 75.51 crore has also been earmarked for further expansion and operational improvements