Air travel from Delhi could become more expensive as Delhi International Airport Ltd (DIAL), owned by GMR Group, has submitted a proposal to the Airport Economic Regulatory Authority (AERA) requesting an increase in the user development fee (UDF) charged to passengers. The proposal also includes a hike in landing and parking charges for aircraft, which could lead to a 5-10% rise in airfares if approved.
Proposed User Development Fee
According to the proposal, starting from the 2025-2026 financial year, domestic passengers departing from Delhi airport will have to pay Rs 610 during peak hours and Rs 405 during non-peak hours as user development fees. For domestic arrivals, the charges will be Rs 210 during peak hours and Rs 140 during non-peak hours.
International passengers will also see higher charges. Economy class passengers arriving in Delhi will need to pay Rs 280, while business class travelers will be charged Rs 570. For international departures, economy class passengers will be charged Rs 810, while business class flyers will have to pay Rs 1,620.
Notably, DIAL has also proposed doubling the UDF for international business and first-class passengers compared to economy-class travelers over the next four financial years.
Landing and Parking Charges Set to Increase
Apart from the increase in passenger fees, the airport operator has also proposed a hike in landing charges for aircraft. The proposed changes include an increase in fees for:
- Narrow-body aircraft like the Airbus A320 from Rs 188 to Rs 300 per metric tonne.
- Wide-body aircraft such as the Boeing 777 and Airbus A350 from Rs 210 to Rs 430 per metric tonne.
Airline officials believe that these additional charges could be passed on to passengers, making airfares even more expensive.
To discuss these proposed hikes, AERA held consultations on February 17, 2025, with representatives from GMR Airports, domestic airlines, and the International Air Transport Association (IATA). Stakeholders have been asked to submit their feedback in writing by March 3, 2025 before AERA makes a final decision.
Why Airports Charge User Development Fees?
The user development fee is imposed to help fund airport modernization projects and bridge revenue gaps. It is collected from departing passengers as part of their ticket price and later transferred to the airport operator by the airlines. Both Delhi and Mumbai airports have been authorized by the government to charge UDF to support expansion and infrastructure improvements.
Industry experts and airline officials warn that if higher UDF and landing fees are implemented, it could reduce passenger demand and financially strain airlines. Lean travel periods such as January-March and July-September could be particularly affected, as airlines offer discounts during these months to attract travelers.
If the proposal is approved, travelers flying in and out of Delhi Airport should be prepared for higher ticket prices in the coming years.
