GMR Airport, SpiceJet to IndiGo: This Supreme Court hearing is important for aviation stock shareholders in India

Aviation stocks: Aviation sector stocks will be in focus of the Indian stock market investors after the Supreme Court's hearing on potentially increasing the User Development Fee (UDF) for customers travelling from Mumbai and Delhi airports.

A recent Telecom Disputes Settlement and Appellate Tribunal (TDSAT) order has redefined the formula for calculating airline tariffs between the 2009-2014 fiscal year, resulting in two of India's largest airports owing more than ₹50,000 crore in unpaid dues.

Media reports have suggested that the amount due is likely to be collected from the passengers through the user development fees (UDF) component, which is included in their ticket fare.

This potential move is, in turn, likely to make the airline tickets more expensive for passengers who will be travelling to and from the Mumbai and Delhi airports.

As per the latest development, the tribunal order has been challenged by the Airports Economic Regulatory Authority (AERA) and domestic and foreign airlines. The matter is set to be presented to a Supreme Court bench on Wednesday, 3 December 2025.

Negative implications ahead?

Seema Srivastava, Senior Research Analyst at SMC Global Securities, said that the Supreme Court's decision on the User Development Fee (UDF) is a critical event that is likely to reshape the financial landscape for GMR Airports and the wider aviation sector.

Srivastava explained that if the apex judicial body allows the fee hike, GMR Airports Infrastructure, which operates the Delhi Airport, will be the biggest beneficiary, as it will be able to recover the shortfalls from 2009–2014 through the charges.

“This recovery likely to strengthen its revenue profile, improves cash flows, and enhances long-term visibility, likely triggering positive market sentiment and potential re-rating of the stock. However, if the court denies or delays approval, GMR’s prospects of retrieving the massive owed amount weaken which could exert short-term pressure on its share price and dampen investor confidence,” said the expert.

“For airlines such as IndiGo and SpiceJet, the implications are largely negative if the UDF hike is cleared. Higher airport levies translate into increased operating costs that airlines will inevitably pass on to customers through higher fares, risking slower passenger growth and margin compression. This could weigh on airline stocks in the near term,” she said.

Srivastava said that a favourable ruling for GMR would set a strong regulatory precedent for other private airport operators, including those under the Adani Group. Such validation of UDF calculation and recovery norms would reinforce their financial claims and strengthen their long-term business models.

Stocks on focus

1. GMR Airports Ltd (GMRAIRPORT): GMR Airports stock closed 1.27% lower at ₹105.35 after Wednesday's trading session, compared to ₹106.70 at the previous market close.

Shares of GMR Airports are trading 1.28% lower in the last five market sessions on the Indian stock market. However, the company's shares have risen over 12% in the last one-month period.

2. InterGlobe Aviation Ltd (IndiGo): IndiGo shares closed 1.75% higher at ₹5,598.10 after Wednesday's stock market session, compared to ₹5,697.70 at the previous market close.

Shares of IndiGo have declined 5.42% in the last five market sessions and are trading 1.69% lower in the last one-month period.

3. SpiceJet Ltd (SPICEJET): SpiceJet shares closed 0.28% higher at ₹31.85 after Wednesday's stock market session, compared to ₹31.76 at the previous market close.

SpiceJet stock has lost 6.10% in the last five stock market sessions and is trading 13.57% lower in the last one-month period.

Read all stock market news here

Read all stories by Anubhav Mukherjee

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.