Delhi Air Travel To Get Costlier? DIAL Proposes UDF Hike, Domestic Fares May Rise 1.5-2%

A proposed tariff hike at Delhi’s Indira Gandhi International Airport (IGIA) is expected to raise domestic airfares by 1.5 to 2%, according to a top official. The Delhi International Airport Ltd (DIAL), which operates IGIA, has put forward a pricing model with different user fees based on travel class and peak or off-peak hours. DIAL CEO Videh Kumar Jaipuriar said the Yield Per Passenger (YPP) will rise from ₹145 to ₹370 once the tariff revision is approved. YPP includes both airline and passenger charges, with the new structure shifting the balance toward passenger fees. Currently, 68% of YPP is attributed to airline charges and 32% to passenger charges. Under the new model, about 70% will come from passenger charges. Jaipuriar noted that the impact on international fares will be less than 1%, while consultations are ongoing with the Airports Economic Regulatory Authority (AERA) for implementing the new tariffs from April 1, 2024, to March 31, 2029. Delhi airport's current User Development Fee (UDF) is around ₹77 per passenger. Jaipuriar highlighted YPP comparisons with other major airports: ₹478 at Bangalore, ₹533 at Chennai, and ₹637 at Kolkata. Internationally, Heathrow charges ₹3,100, Schiphol ₹1,507, Hong Kong ₹946, and Paris ₹1,770, with figures varying based on exchange rates. Listen in to know more.