MIAL UDF Increase: Passengers flying from Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA) may soon face higher flight ticket costs.
Mumbai International Airport Limited (MIAL) has proposed an increase in the User Development Fee (UDF), which has not been revised since 2021.
This proposed fee hike will contribute to the infrastructure and technical development of the airport.
New UDF Charges
MIAL, which operates Mumbai Airport under Adani Airport Holdings Limited (AAHL), has suggested that the UDF be increased to:
Rs 325 for domestic passengers
Rs 650 for international passengers
Investments and Revenue Plans
MIAL plans to invest ₹10,000 crore in airport infrastructure development over the next five years.
Out of this, the aim is to generate ₹7,600 crore from around 229 million passengers. The proposal includes an increase in UDF while reducing landing and parking fees by 35%.
This adjustment brings Mumbai Airport’s tariff structure in line with other major airports across India and is expected to improve passenger experience while ensuring revenue stability.
18% Rise in Yield Per Passenger (YPP)
Currently, Mumbai airport’s average revenue per passenger (YPP) stands at ₹285, but the proposal suggests increasing this to ₹332, representing an 18% hike.
This revision is part of the consultation paper issued by the Airport Economic Regulatory Authority (AERA) on March 10, 2025.
What is UDF?
The User Development Fee (UDF) is charged to passengers at airports to support the development, maintenance, and enhancement of airport infrastructure.
The fee helps fund improvements like building new terminals, extending runways, upgrading security systems, and implementing modern technology.
Who Decides UDF?
UDF is collected from both domestic and international passengers and is added to their ticket fare.
The Airport Economic Regulatory Authority (AERA), established in 2009, sets the UDF rates, considering factors like passenger traffic, airport location, and infrastructure needs. These fees are periodically revised at major airports in India.
