Delhi International Airport Limited (DIAL), operated by GMR Airports, has proposed a significant increase in the User Development Fee (UDF) for passengers, citing financial losses and mounting debt as key reasons for the hike. The revised fee structure, part of the latest tariff proposal for the fourth control period (April 2024–March 2029), introduces differentiated charges based on peak and off-peak hours.
Currently, Delhi Airport charges a flat UDF of ₹129 for both domestic and international passengers, among the lowest in the country compared to airports in Bengaluru, Hyderabad, Chennai, Kolkata, and Ahmedabad. Under the proposed revision, departing passengers will be charged ₹405 during off-peak hours and ₹610 during peak hours between April 2025 and March 2026. Arriving passengers will pay ₹140 in off-peak hours and ₹210 during peak hours.
The UDF, a fee levied by airport operators to offset revenue shortfalls, is subject to approval by the Airports Economic Regulatory Authority of India (AERA). GMR, which took over operations of Delhi Airport in 2006, has justified the proposed hike as a necessary measure to sustain operations and fund infrastructure developments.
GMR Airports also operates Hyderabad International Airport, Goa International Airport in Mopa, Nagpur International Airport, and Bidar Airport, while developing Visakhapatnam International Airport.
The proposed hike, if approved, is expected to impact air travel costs for passengers flying through Delhi Airport.
On the international side, it has proposed a fee of ₹810 on departing passengers of economy class and ₹1,620 for business class. Arriving passengers of economy class are proposed to pay ₹280 and business class ₹570. These rates are the proposal, and the final tariff will be determined by AERA.
Delhi Airport has justified the demand, citing insufficient cashflows for operations, management, and development of the airport. It reported losses totalling ₹1,795 crores from FY21 to FY24, and it is projecting a loss of ₹1,794 crores in FY25.
DIAL has pointed out several concerning factors leading to their request for the hike. By March 2025, the airport’s equity is expected to be wiped out, resulting in a negative net worth. DIAL currently has a total debt of ₹14,786 crores as of March 31, 2024. A declining credit rating will make it difficult for the company to raise funds for future projects.