Delhi Airport proposes a revised User Development Fee with peak-hour pricing

Travellers passing through Delhi’s Indira Gandhi International Airport (IGIA) may soon encounter higher User Development Fees (UDF), as Delhi International Airport Limited (DIAL) has proposed a revised tariff structure. The new plan, submitted to the Airport Economic Regulatory Authority (AERA), introduces peak-hour and class-based pricing, aiming to balance passenger flow while addressing the airport’s financial challenges.

Under the proposal, international economy-class passengers departing from IGIA would pay INR 810 per passenger during the fiscal years 2025-26 and 2026-27, with the fee reducing to INR 430 from 2027 onwards. Business-class passengers would face a steeper charge of INR 1,620 initially, which would drop to INR 860 in later years. For international arrivals, economy travellers would pay INR 280 per passenger, eventually lowering to ₹150, while business-class arrivals would incur If approved by AERA, the new UDF system would take effect from April 1, 2025, making IGIA the first airport in India to introduce such differentiated pricing INR 570, decreasing to 300 in the final two years of the proposal’s term.

Domestic travellers, meanwhile, would see UDFs fluctuate based on peak and off-peak hours. Departing passengers could pay anywhere between INR 315 and INR 610 per person during peak hours, while arriving passengers would be charged between INR 115 and INR 210. DIAL has defined peak hours as 5 am to 8:55 am and 5 pm to 8:55 pm — periods when the airport experiences its highest traffic.

According to DIAL, the revised structure is essential for financial sustainability. The airport operator reported significant fiscal losses exceeding INR 1,500 crore this year, largely due to the capital-intensive Phase 3A expansion project, which cost over INR 12,500 crore. Much of this development was financed through borrowings, pushing DIAL’s debt burden beyond INR 15,000 crore as of December 2024.

If approved by AERA, the new UDF system would take effect from April 1, making IGIA the first airport in India to introduce such differentiated pricing. While the plan aims to streamline passenger movement and bolster revenue, it could also impact travel budgets, particularly for those flying during peak hours or in premium classes. As the proposal undergoes consultation, stakeholders and passengers alike will be watching closely to understand how this change might reshape the travel experience through one of India’s busiest airports.