Air Passengers Face Deeper Pocket Drain As Airport UDF Soar By An Average Of Almost 300% Across Country In Last 10 Years

Mumbai: Flying out of major Indian airports has become substantially more expensive over the last four years, as User Development Fees (UDF) levied on outbound passengers have seen massive across-the-board hikes at key hubs across the country. While international UDF at Ahmedabad Airport saw the steepest hike of 1,300%, the domestic UDF across 10 major Indian airports has increased by 200% in the last four years while UDF for international travellers has increased by 387%.

​The UDF, determined by the Airports Economic Regulatory Authority of India (AERA), is collected directly from passengers by airport concessionaires to fund capital expenditure and operational costs.

​The figures, provided in Lok Sabha regarding airport revenue operations, reveal a dramatic shift in tariff structures between March 2022 and March 2026 across ten major airports. ​While international passengers at Mumbai saw embarking UDF shoot up by 259% – from Rs 171 to Rs 615 for economy class and Rs 695 for business class – the steepest percentage escalations took place at Ahmedabad and Chennai.

​At Ahmedabad’s Sardar Vallabhbhai Patel International Airport, international UDF surged by an astounding 1,300%, jumping from Rs 85 to Rs 1,190. Its domestic UDF also escalated by 605%, rising from Rs 85 to Rs 600. ​Similarly, Chennai witnessed sharp spikes, with domestic UDF leaping 494%, from Rs 69 to Rs 410, and international UDF surging 805%, from Rs 69 to Rs 625.

India's busiest aviation hub – ​Delhi’s Indira Gandhi International Airport – logged a 400% increase in international embarking fees for economy passengers, from Rs 130 to Rs 650, though domestic embarking fees saw a slight contraction of -0.76%, moving from Rs 130 to Rs 129.

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​Meanwhile, southern metros like Bengaluru, Hyderabad, and Cochin experienced hefty upwards revisions. In ​Bengaluru, domestic UDF rose 198%, from Rs 184 to Rs 550, while international UDF increased 78% from Rs 839 to Rs 1,500. In Hyderabad, domestic UDF climbed 166% from Rs 281 to Rs 750, whereas international UDF grew 281% from Rs 393 to Rs 1,500. At ​Cochin and Goa's Dabolim Airports, domestic UDF expanded 285% and 89% respectively, whereas international UDF climbed 78% and 49% respectively.

​Bucking the national trend, Kolkata’s Netaji Subhash Chandra Bose International Airport was the sole major hub to post reductions across both segments, with domestic and international fees dropping by 6%.

​The Ministry defended the tariff determinations, stating that AERA follows a uniform regulatory framework across all major airports regardless of whether they are operated by public or private joint ventures.

​Responding to queries regarding potential cost escalations driven by concessionaire practices – such as inflated capital expenditures adding to the regulatory asset base, operational expense surges, or conservative revenue forecasting – the Ministry asserted that all expenditures undergo strict technical and financial vetting. ​"After detailed technical, financial, and commercial scrutiny, only prudently and efficiently incurred costs are admitted for tariff determination," the Ministry noted in its written statement.

​While AERA does not directly regulate non-aeronautical services – such as retail, food & beverage, and parking – 30% of non-aeronautical revenue is mandated to cross-subsidise aeronautical charges, aiming to keep user fees reasonable. Despite these regulatory checks, the steep upward adjustments reflect the significant capital investments poured into expanding airport infrastructure over recent control periods.

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