Higher tariffs will increase domestic airfares at Delhi airport by 1.5-2 pc, says DIAL

New Delhi, February 26 – Domestic airfares are set to rise by 1.5-2% following a proposed tariff hike at Delhi’s Indira Gandhi International Airport (IGIA), a move expected to impact passengers once approved.

The Delhi International Airport Ltd (DIAL), operated by the GMR Group-led consortium, has proposed revised user charges that vary for economy and business class travelers, as well as during peak and off-peak hours.

DIAL CEO Videh Kumar Jaipuriar stated that the Yield Per Passenger (YPP)—which includes airline and passenger charges—will increase to ₹370 from the current ₹145 upon approval. The proposed hike reflects a 140% rise compared to 2006, when DIAL took over airport operations.

"Under the revised structure suggested by the Airport Economic Regulatory Authority (AERA), around 30% of YPP will be airline charges and 70% passenger charges. Currently, 68% of the fee is attributed to airline charges and 32% to passenger charges," Jaipuriar explained in a media briefing.

For international travel, the fare impact is expected to be less than 1%. The User Development Fee (UDF) currently stands at ₹77 per passenger.

Airport Expansion and Temporary Terminal Closure​

DIAL is actively investing in upgrading IGIA, which has three terminals—T1, T2, and T3—and handles around 1,300 flights daily. As part of modernization efforts:

• Terminal 2 (T2) will be shut down for four to five months starting April for renovations.
• The Instrument Landing System (ILS) at one runway will be upgraded to enhance low-visibility flight landings.
• Before T2’s closure, the renovated section of Terminal 1 (T1) will become operational.
• A section of Terminal 3 (T3) will be converted for international operations.

Financials and Investment Commitment​

Since taking over in 2006, DIAL has invested ₹30,000 crore in IGIA and contributed ₹25,000 crore to the Airports Authority of India (AAI) as revenue share. Additionally, ₹192 crore has been paid as dividends.

Despite these investments, DIAL’s accumulated losses stood at ₹2,900 crore as of December 2024.

With ongoing consultations over the tariff proposal for the April 2024 – March 2029 period, the new charges will come into effect once regulatory approvals are secured.