Sky-high fees: Why flying from these 16 airports is costing you more

Major airports in India have raised their user development fees, aimed to cover revenue gaps but adding to the financial burden on travellers since the beginning of FY25

A surge in airport charges that has quietly taken off at terminals of Bengaluru, Kochi, and Ahmedabad and 13 other major Indian airports is making travellers’ wallets a bit lighter, even though their preferred airlines haven’t increased the flight ticket prices. 

Since the start of FY25, 16 airports have increased their user development fees (UDF), reported Mint. This fee is intended to cover revenue shortfalls and ensure fair returns for airports. These fees, which differ from one airport to another, are collected by the airline and then given to the airport operator.

How much has the airport charges increased?

According to a statement from the Civil Aviation ministry in response to a parliamentary question, airports in Bengaluru, Hyderabad, Mangalore, Thiruvananthapuram, Ahmedabad, Jaipur, Lucknow, Kannur, Kochi, Chennai, Kozhikode, Kolkata, Goa, Bhubaneswar, Patna, and Srinagar have raised their UDFs by 2 per cent to 200 per cent this fiscal year, the report claimed.

 

For instance, a domestic passenger flying from Patna airport now pays Rs 660 as UDF, a 223 per cent increase from FY24. In Kannur, the fee is Rs 750 (up 135 per cent rise), and in Jaipur, it’s Rs 805 (up 104 per cent rise). Departing passengers at Ahmedabad, Thiruvananthapuram, and Chennai airports are paying 80 per cent, 52 per cent, and 34 per cent more in UDF, at Rs 450, Rs 250, and Rs 770 respectively, the report said.

Similarly, UDF has increased by 25 per cent at Mangalore, 22 per cent at Bengaluru, 15-17 per cent at Kochi and Goa, 13 per cent each at Srinagar and Lucknow, 7 per cent at Hyderabad, and over 2 per cent at Kozhikode and Kolkata.

When did the charges come into effect?

Most airports implemented the fee increases at the beginning of FY25. However, the increase at Thiruvananthapuram airport took effect on July 1, and at Jaipur airport, it will be effective from August 1. These charges follow tariff orders issued by the Airports Economic Regulatory Authority of India (AERA) between August 2021 and July 2024. AERA, established in 2009, determines tariffs for aeronautical services at major airports.

Airports charge for both 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.

Increased burden on air travellers

The rise in airport charges is adding to the financial burden on passengers, who are already facing higher airfares this year, as airlines struggle to find enough aircraft to meet the growing demand. Last week, reports emerged that airfares might increase further during the September quarter due to a surge of holidays.

The Mint report quoted Rajiv Mehra, president of the Indian Association of Tour Operators, saying that any increase in user fees should be reasonable and justified. He said airfares are influenced by various factors such as demand, competition, and fuel costs, with the rise in airport fees now being an additional factor, anticipating further fare increases.

Fears of a downfall in air travel due to surge in prices

The report cited Jyoti Mayal, vice-chairperson of the Federation of Associations in Indian Tourism & Hospitality, as saying that while higher airport charges support operations, maintenance, and expansion, and enhance infrastructure and safety, they also lead to increased fares and might discourage air travel.

She also noted that airfares in India are already high due to the lack of concessions for jet fuel and called for a sustainable model to keep costs reasonable for travellers to explore destinations and support growth. A balanced approach is crucial for the growth of tourism, she told the business-daily.