New Delhi, February 26 – Passengers flying from Delhi’s Indira Gandhi International Airport (IGIA) could see a marginal rise in airfare as the proposed tariff hike by Delhi International Airport Ltd (DIAL) is expected to increase domestic airfares by 1.5 to 2 per cent, while international fares will see a less than 1 per cent impact.
Proposed User Fees and Tariff Adjustments
DIAL, operated by a consortium led by the GMR Group, has put forward a plan for differentiated User Development Fees (UDF) based on class type (economy vs. business) and time of travel (peak vs. off-peak). The proposal, currently under consultation with the Airport Economic Regulatory Authority (AERA), will be in effect from April 1, 2024, to March 31, 2029 if approved.At present, the Yield Per Passenger (YPP) at Delhi Airport stands at ₹145. With the proposed hike, the YPP is expected to increase to ₹370, a 140 per cent rise compared to 2006, when DIAL took over operations. The revised YPP will see 30 per cent allocated to airline charges and 70 per cent to passenger charges, shifting from the current 68 per cent airline and 32 per cent passenger charge ratio.
Comparative Airport Charges
DIAL CEO Videh Kumar Jaipuriar highlighted the YPP at other major Indian airports:- Bangalore – ₹478
- Chennai – ₹533
- Kolkata – ₹637
- Heathrow (London) – ₹3,100
- Schiphol (Amsterdam) – ₹1,507
- Hong Kong – ₹946
- Paris – ₹1,770
Infrastructure Upgrades and Temporary T2 Shutdown
DIAL is actively investing in airport infrastructure, with ₹30,000 crore spent on improvements since 2006. The airport, which handles 1,300 daily flights, is planning a four- to five-month shutdown of Terminal 2 (T2) starting April 2024 to upgrade the Instrument Landing System (ILS) on one of the runways, enabling better low-visibility operations.During this period:
- The renovated section of Terminal 1 (T1) will be opened to accommodate passenger flow.
- A section of Terminal 3 (T3) will be converted for international operations.
DIAL’s Financial Standing and Industry Support
DIAL has shared ₹25,000 crore in revenue with the Airports Authority of India (AAI) and paid a ₹192 crore dividend over the years. However, it reported an accumulated loss of ₹2,900 crore as of December 2024.The Association of Private Airport Operators (APAO) has backed the proposed variable tariff model, emphasizing that class-based UDF and peak-hour pricing help balance affordability and financial sustainability. It also praised the fair distribution of UDF between arriving and departing passengers and competitive landing and parking fees to support airline operations.
With consultations ongoing, Delhi airport passengers can expect changes in tariff structures and operational adjustments in the coming months.