Air travel to and from Delhi’s Indira Gandhi International Airport (IGI) is expected to become significantly more expensive, particularly for international business and first-class travelers. The Delhi International Airport Limited (DIAL), which operates the airport, has proposed a revised User Development Fee (UDF) structure that, if approved, will impose variable tariffs for different classes and peak-hour travelers.
Higher UDF for business-class travellers
For the first time, Delhi Airport has proposed a differentiated UDF based on travel class. According to its latest submission to the Airports Economic Regulatory Authority (AERA) of India, international business and first-class passengers may soon be charged double the UDF compared to economy and premium economy travelers.
As per the tariff document filed by GMR Group, which owns the airport, an international passenger traveling in business class will need to pay INR 570 as UDF from April 2025, whereas economy and premium economy travelers will be charged INR 280. This marks a shift in India’s airport pricing model, introducing a variable tariff structure at an airport for the first time.
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Peak-hour charges for domestic travellers
Domestic passengers flying during busy hours will probably have to pay increased landing and parking costs in addition to those travelling abroad. Two peak-hour windows have been established at Delhi Airport: 5:00 AM to 8:55 AM and 5:00 PM to 8:55 PM. Airlines may raise tickets for passengers travelling during these periods of high demand in order to cover the higher costs.
Why are the charges increasing?
The UDF hike is linked to Delhi Airport’s recent INR 12,900 crore investment in infrastructure upgrades. These include the expansion of Terminal 1, a 2.4 km elevated taxiway, road infrastructure improvements, and better transfer facilities.
The proposed adjustment attempts to more fairly spread the financial damage. Airport operators charge UDF to recover such costs. Spreading out the fees guarantees that budget-conscious passengers, such as economy passengers, will be less affected than premium passengers, as per a source.
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Potential impact on travel and airlines
The goal of this pricing strategy is to encourage airlines to plan more flights during off-peak hours while also reducing traffic during peak hours. In order to improve airport efficiency and balance passenger flow, the new structure will increase the cost of business-class and peak-hour travel.
With AERA reviewing the proposal, travelers should prepare for possible fare increases if the revised UDF structure gets government approval. This move could influence travel decisions, especially for frequent business travelers and those opting for premium airline services.
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