Hello User
Sign in
Hello
Sign Out
Subscribe
Save BIG. Mint+The Economist at ₹3999Claim Now!
Next Story
Business News/ Industry / Why you're paying more for flying from these airports

Why you're paying more for flying from these airports

  • Beginning FY25, Bengaluru, Lucknow, Hyderabad, Kochi and a dozen more airports have raised user development fees. This comes at a time fares are already rising due to insufficient aircraft and a flurry of holiday travel.

Sixteen airports have raised UDF in a range of 2% to 200% this fiscal year.
Gift this article

New Delhi: Flying out from Bengaluru, Kochi or Ahmedabad? You may be paying more than a year ago, even if your favourite airline has not raised fares. The reason: Higher airport charges, which have kicked in at these and 13 other major airports.

New Delhi: Flying out from Bengaluru, Kochi or Ahmedabad? You may be paying more than a year ago, even if your favourite airline has not raised fares. The reason: Higher airport charges, which have kicked in at these and 13 other major airports.

Since the beginning of FY25, 16 airports have raised user development fees (UDF), a levy designed to bridge revenue shortfall and ensure fair returns for airports. The fees, which vary from airport to airport, are collected by the airline, and passed on to the airport operator.

Since the beginning of FY25, 16 airports have raised user development fees (UDF), a levy designed to bridge revenue shortfall and ensure fair returns for airports. The fees, which vary from airport to airport, are collected by the airline, and passed on to the airport operator.

Airports at Bengaluru, Hyderabad, Mangalore, Thiruvananthapuram, Ahmedabad, Jaipur, Lucknow, Kannur, Kochi, Chennai, Kozhikode, Kolkata, Goa, Bhubaneswar, Patna, and Srinagar have raised UDF in a range of 2% to 200% this fiscal year, the civil aviation ministry said in response to a question in parliament.

Additional burden to fliers

The increase in airport charges comes as an additional burden to fliers facing higher airfares this year, as airlines struggle to find enough aircraft to serve soaring demand. On 16 July, Mint reported that airfares may rise further during the September quarter due to a flurry of holidays.

It is the passenger who will end paying more due to the airport fee hike, said Rajiv Mehra, president of the Indian Association of Tour Operators. "Any user fee increase should be reasonable and justified. Also, airfares are a function of multiple factors like demand, competition and fuel costs. Rise in airport fees is now an additional factor," said Mehra, who expects fares to rise further.

Also read | Airport privatization plan on the anvil

Also read | India prepares plan to double airports to 300 by 2047

Also read | Indian airlines, airports adopting AI tools to improve services

A passenger taking a domestic flight from the Patna airport is now paying 660 as UDF, up 223% from FY24. Corresponding numbers for Kannur is 750 (up 135%) and Jaipur 805 (up 104%). At Ahmedabad, Thiruvananthapuram and Chennai airports, departing passengers pay 80%, 52% and 34% more in UDF, at 450, 250 and 770 respectively.

Similarly, the UDF has been hiked by 25% at Mangalore, 22% at Bengaluru, 15-17% at Kochi and Goa, 13% each at Srinagar and Lucknow, 7% at Hyderabad and over 2% at Kozhikode and Kolkata.

May depress air travel

Higher airport charges support operations, maintenance and expansion, as well as help enhance infrastructure and safety, but they also drive up fares and may depress air travel, said Jyoti Mayal, vice-chairperson of the Federation of Associations in Indian Tourism & Hospitality. "Countries with robust economies impose higher airport taxes, while those with weaker economies keep fees lower to attract tourists and business travellers. India has recently post-covid seen a surge in domestic travel and this should not become a reason for a decline." Mayal said that airfares in India are anyway higher since there are no concessions for jet fuel. "The government needs to look into a sustainable model to keep costs reasonable for travellers to explore destinations & the growth. A balanced approach is essential & critical for growth in tourism," she added.

While most airports rolled out the increase at the beginning of FY25, the increase in Thiruvananthapuram airport took effect on 1 July and that for Jaipur airport is effective 1 August. The charges follow tariff orders issued by the Airports Economic Regulatory Authority of India (AERA)between August 2021 and July 2024. AERA, a regulator set up in 2009, determines tariffs for aeronautics services at major airports.

An airport charges for aeronautical and non-aeronautical services. Aeronautical services include navigation, surveillance, and supportive communication to air traffic management for landing, housing and parking of aircraft or any other ground facility provided in connection with aircraft operations at the airport.

ABOUT THE AUTHOR

Anu Sharma

Anu Sharma is an Assistant Editor with Mint. She is based out of New Delhi and primarily writes on aviation. She has a wide-ranging experience across media such as news wire, television and website. She has worked closely on the infrastructure space in the past. An alumnus of Indian Institute of Mass Communication, her previous stints include Economic Times online, Cogencis news wire and CNBC-TV18 news channel.
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Get the latest financial, economic and market news, instantly.