Flying costs to rise? Delhi airport proposes variable user fees for economy, business class

Delhi International Airport Ltd (DIAL), the operator of Indira Gandhi International Airport (IGIA), has proposed different User Development Fees (UDF) for economy and business class passengers, along with differential charges for peak and off-peak hours.

The proposal, part of DIAL’s tariff submission for the fourth control period from April 1, 2024, to March 31, 2029, has been submitted to the Airports Economic Regulatory Authority (AERA).

For international embarking passengers, the proposed UDF ranges from ₹430 to ₹810 for economy class and from ₹860 to ₹1,620 for business class. DIAL has suggested a UDF of ₹810 per economy class passenger for the first two years (2025-26 and 2026-27), reducing to ₹430 for 2027-28 and 2028-29. For business class fliers, the fee is proposed at ₹1,620 for the first two years, dropping to ₹860 in the last two years.

International disembarking passengers may face a UDF of ₹280 (economy) and ₹570 (business) per person in 2025-26 and 2026-27, which would decrease to ₹150 and ₹300, respectively, for 2027-28 and 2028-29.

Domestically, DIAL has proposed different UDF rates for embarking and disembarking passengers during peak and off-peak hours. The fees for domestic embarking passengers range from ₹315 to ₹610 during peak hours, while disembarking passengers could be charged between ₹115 and ₹210. Peak hours are typically from 0500 to 0855 hours and 1700 to 2055 hours.

A DIAL spokesperson confirmed on Tuesday that the tariff proposal will be reviewed in an upcoming stakeholders' meeting as part of the regulatory process.

In a letter to AERA earlier this month, DIAL projected a loss exceeding ₹1,500 crore for the current financial year.

"Considering the allowed target revenue in the next four years, the average aero revenue per passenger is estimated at ₹370, with ₹346 for 2025-26 and ₹360 for 2026-27. Based on this, DIAL anticipates losses during these two financial years," the letter stated.

The operator also expressed concerns about potential credit rating downgrades and difficulties in raising debt to meet repayment obligations due in October 2026. To address this, DIAL has requested AERA to permit aeronautical revenue of ₹450 per passenger for FY 2025-26 and 2026-27, with the balance amount to be adjusted in the subsequent two years of the control period.