Business-class flyers from Delhi may soon have to shell out more

DIAL proposes charging international business, 1st class passengers 2x the user development fee

Air travel to and from Delhi Airport is likely to become much costlier. What’s more, depending on your class and time of travel, it could burn an even bigger hole in your pocket.

 

For the first time, Delhi International Airport (DIAL), which operates the airport, has proposed charging international business and first-class passengers double the user development fee (UDF) compared to international economy and premium economy travellers over the next four financial years, according to its latest submission to the Airports Economic Regulatory Authority (AERA) of India.

 

Until now, all departing international passengers at India’s largest airport have paid a flat Rs 128 as UDF on their basic ticket price. DIAL now proposes that business and first-class passengers pay Rs 1,620 as UDF in 2025-26 and 2026-27, and Rs 860 in 2027-28 and 2028-29. For departing international economy and premium economy travellers, the proposed UDF is Rs 810 in 2025-26 and 2026-27, reducing to Rs 430 in 2027-28 and 2028-29.

 

The UDF is included in the final price of an airline ticket. The airline collects this fee and passes it on to the airport operator. DIAL has cited ongoing losses, capital expenditure plans, and debt servicing as reasons for the proposal.

 

Business Standard has reviewed DIAL’s proposal to AERA, which will take the final decision after discussions with all aviation stakeholders.

 

In its proposal, GMR group-led DIAL has also sought higher UDF for all domestic passengers travelling during morning and evening peak hours for the next four financial years. It has classified 5 am-8.55 am and 5 pm-8.55 pm as “peak hours”.

 

Currently, all departing domestic passengers, like their international counterparts, pay a flat Rs 128 as UDF. DIAL now proposes that domestic passengers flying during peak hours pay Rs 610 in 2025-26 and 2026-27, and Rs 315 in 2027-28 and 2028-29. For non-peak hours, the proposed UDF is Rs 405 in 2025-26 and 2026-27, reducing to Rs 210 in 2027-28 and 2028-29.

 

The airport operator has given multiple reasons for this proposal. “DIAL in the past has been incurring losses, and the losses for the current financial year (2024-25) are expected to be over Rs 1,500 crore. DIAL has recently completed the Phase 3A expansion project, incurring huge capital expenditure in excess of Rs 12,500 crore, a considerable portion of which is from borrowings. At the end of December 2024, DIAL has outstanding debt in excess of Rs 15,000 crore, of which one series of bonds worth $522 million (Rs 4,565 crore as per current exchange rate) is due for maturity in October 2026,” DIAL said.