Passengers flying internationally from Indira Gandhi International Airport (IGIA) will have to pay a significant fee in User Development Fees (UDF) from April 16, 2025 after the Airports Economic Regulatory Authority (AERA) has approved a huge 500 per cent fee hike for international flyers, which will impact both departure and arrival fees.
Under the new structure, the User Development Fee (UDF) for departing international passengers will rise to Rs 650 for economy class and Rs 810 for business class. Delhi’s IGI airport will be the first in India to introduce differential UDF rates for economy and business class.
Approving the final tariff order for the IGIA for the April 1, 2024 to March 31, 2029 period, AERA said it decided not to change the prevailing UDF of Rs 129 for domestic passengers as they comprise 80 per cent of the total traffic at the airport.
Disembarking passengers will also see an increase, with economy travellers paying Rs 275 and business class travellers Rs 345. Explaining the rationale behind having a differential rate of UDF for the international economy and business class passengers, AERA said it aligns with the ‘user pays’ principle and reflects the enhanced passenger experience and expanded facilities available and used by international travellers. The watchdog said that airport operator DIAL had proposed a 730 per cent increase in prevailing airport charges.
GMR Airports has said that AERA has accepted various principles of variable tariff plan for the Delhi airport and that the existing aeronautical tariff has been increased around 148 per cent for the fourth control period ending March 31, 2029. The revised tariffs for the fourth control period — April 1, 2024 to March 31, 2029 — will be applicable from April 16, 2025. UDF has been split across both embarking and disembarking passengers.
“The same has been further bifurcated into Domestic and International passengers with a differential rate for economy and business class international travellers,” the company said in a regulatory filing late on Saturday.
GMR Airports’ subsidiary Delhi International Airport Ltd (DIAL) operates the IGIA in the national capital. “In line with the public consultation paper issued on January 31, 2025, AERA has increased the existing aeronautical tariff by (approx) 148 per cent.
“Against the existing yield per pax of (approx) Rs 145 valid under 3rd control period, the nominal yield per pax has been increased to Rs 360 throughout the balance four years of control period valid till March 31, 2029,” the filing said. The filing also said the landing charges for wide-body aircraft for scheduled airline operators who will operate direct flight to new international destinations have been waived off. This will help encourage more international long-haul flights and in making the airport an hub.
Among other aspects, GMR Airports said AERA has taken cognisance of the TDSA judgement, dated July 21, 2023, wherein certain significant issues have been decided in favour of DIAL. “However, since the said TDSAT order has been challenged by User Development Fee in Supreme Court, AERA has decided to defer the implementation of the said TDSAT order till the matter attains finality in the proceedings before the Supreme Court,” it noted.
The company also said that as per Supreme Court judgement, dated July 11, 2022, in the matter of tariff order for the first control period, AERA has given effect in the order towards computation of corporate tax on aeronautical earnings in the present fourth control period of the tariff order.
Delhi handled 73.7 million passengers in Fiscal Year 24. More than 80 per cent of its passengers are domestic. A Parliamentary Affairs Committee had earlier expressed dissatisfaction over the ‘arbitrary’ rise in User Development Fee and airfares, arguing that the existing framework lacks mechanisms to hold private operators accountable.
By distributing UDF charges between departing and arriving passengers, AERA aims to ensure an equitable burden-sharing model for airport users.
The Association of Private Airport Operators (APAO) has supported DIAL’s proposed variable tariff model, calling it a globally recognised approach that balances affordability and financial sustainability. APAO also emphasised the benefits of class-based UDF, peak and off-peak pricing, and competitive landing and parking fees to ensure cost-effective airline operations.
With higher User Development Fee charges, budget-conscious international flyers may consider alternatives to IGIA, such as airports in Mumbai, Bengaluru, or nearby international hubs like Dubai and Bangkok.
Infrastructure upgrades are also underway at IGIA, which handles 1,300 daily flights across three terminals. Since taking over IGIA in 2006, DIAL has invested Rs 30,000 crore and contributed Rs 25,000 crore in revenue-sharing payments to the Airports Authority of India (AAI), along with Rs 192 crore in dividends. However, its accumulated loss stands at Rs 2,900 crore as of December 2024.
