International passengers flying out of Delhi’s Indira Gandhi International (IGI) Airport will face higher charges starting April 1, 2024, after the Airports Economic Regulatory Authority of India (AERA) approved a revised tariff structure valid until March 31, 2029.
Under the new structure, the User Development Fee (UDF) for departing international passengers will rise to ₹650 for economy class and ₹810 for business class.
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Disembarking passengers will also see an increase, with economy travellers paying ₹275 and business class travellers ₹345. Delhi’s IGI airport will be the first in India to introduce differential UDF rates for economy and business class.
Meanwhile, UDF for domestic passengers remains unchanged at ₹129 for embarking and ₹56 for disembarking.
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AERA said in a statement that while the airport operator initially sought a 730% increase in charges, a thorough review led to a moderated 140% hike. This adjustment, AERA stated, is necessary to fund the airport’s capital expenditures while maintaining service standards as per agreements with the government.
UDF is a charge that is levied on passengers and is used for development of airport and related facilities.
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To ensure operational efficiency, AERA has also rationalised landing and parking charges for airlines, maintaining competitive rates. These charges will vary for wide-body and narrow-body aircraft on both domestic and international routes.
AERA justified the differential UDF rates for international passengers by citing the “user pays” principle, emphasising that business-class travellers benefit from enhanced services and facilities.
By keeping domestic UDF unchanged, AERA aims to protect passenger interests, ensure affordability, and support growth in India’s domestic aviation sector. The revised tariffs for international travelers, along with other aeronautical charges, will help fund infrastructure development at IGI Airport while ensuring the financial sustainability of the airport operator, the authority stated.
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