Domestic flight ticket prices are expected to rise by 1.5 to 2 percent due to a proposed fee hike at Delhi’s Indira Gandhi International Airport (IGI).
This change will impact millions of passengers who travel through the airport each year.
Proposed Charges for Different Passengers
Delhi International Airport Limited (DIAL) has suggested different user charges for economy and business class travelers.
Currently, the airport manages around 10.9 crore passengers annually. According to DIAL CEO Videh Kumar Jaipuriar, if the new charges are approved, the revenue per passenger (YPP) will increase from Rs 145 to Rs 370.
Jaipuriar also noted that the proposed fee hike is about 140 percent higher than the 2006 levels. At present, airline charges account for 68 percent,
and passenger charges make up 32 percent. Under the new proposal, this ratio will change to 70 percent airline charges and 30 percent passenger charges.
Impact on Flight Ticket Prices
With this increase, domestic airfares are expected to rise by 1.5 to 2 percent, while international fares will see a smaller impact of less than one percent.
This fee adjustment is planned for the period from April 1, 2024, to March 31, 2029. Currently, the User Development Fee (UDF) per passenger is around Rs 77.
Passengers may experience additional challenges due to this fee hike. The proposal has been submitted to the Airport Economic Regulatory Authority (AERA) and is currently under review.
