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.
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.
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.
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