IGI Airport to hike charges for business class, peak-hour flyers

The GMR Group-owned Delhi Airport has proposed higher charges for business class and peak-hour flyers, starting in April 2025. According to the tariff document filed with the Airport Economic Regulatory Authority (AERA), international business class passengers will pay ₹570 as the User Development Fee (UDF). This is double the ₹280 fee charged to economy or premium economy passengers.

UDF charges are designed to help operators recover costs related to airport infrastructure upgrades. The airport plans to increase fees due to a ₹12,900 crore investment in Terminal 1 expansion, a new 2.4 km elevated taxiway, and improved road and transfer facilities.

The airport also plans to raise landing and parking fees for domestic passengers traveling during peak hours. The peak hours, as defined by Delhi Airport, are from 5 am to 8:55 am and 5 pm to 8:55 pm. In contrast, flights outside these times will incur lower charges.

AERA sets revenue targets for airports based on various factors, such as operating costs and taxes. This pricing strategy aims to prevent rapid increases in airport charges, which currently handles around 20% of India’s total air traffic.

A person involved in the process explained that spreading the charges will minimize the financial impact on price-conscious economy passengers. Premium class travelers will bear higher costs, which helps balance the fees since such flights typically carry fewer passengers.

The airport hopes that higher peak-hour charges will encourage airlines to schedule more flights during non-peak hours, easing congestion and improving operational efficiency.