GMR Airports shares rise 4% as AERA approves tariff hike for Delhi Airport

New Delhi: GMR Airports announced that the Airports Economic Regulatory Authority (AERA) has approved a substantial revision in aeronautical tariffs at Delhi Airport. The revised tariff structure, set to remain in effect until March 31, 2029, includes a 148% increase in aeronautical charges.

Delhi International Airport Limited (DIAL), a subsidiary of GMR Group, has received clearance to implement a significant hike in the User Development Fee (UDF) for international passengers. This decision aims to support infrastructure expansion and strengthen Delhi Airport’s position as a key international hub for long-haul flights.

For domestic passengers, the UDF remains unchanged at Rs 129 for departing travelers and Rs 56 for arrivals, with AERA emphasizing affordability for this segment. However, international passengers will see a notable increase in fees. 

The UDF for departing international travelers has surged from Rs 129 to Rs 650 for economy class (a 403% increase) and Rs 810 for business class (a 527% increase). Additionally, inbound international passengers will now be charged Rs 275 for economy class and Rs 345 for business class, a fee that was not previously levied separately.

Financial and operational adjustments

According to GMR Airports, the approved tariff revision raises the nominal yield per passenger from Rs 145 in the previous control period to Rs 360 for the remaining four years, effective April 16, 2025.

To support the airport’s vision of becoming a major aviation hub, AERA has also waived landing charges for wide-body aircraft operated by scheduled airlines launching direct flights to new international destinations. Furthermore, landing and parking fees for airlines have been adjusted to ensure competitiveness with similar airports.

Rationale behind the tariff revision

Delhi Airport has defended the increased UDF by pointing to financial constraints and ongoing development costs. The airport anticipates a projected loss of Rs 1,794 crore in the financial year 2024-25, further justifying the need for the revised tariffs.

With these changes, GMR Airports expects to enhance operational efficiency, drive infrastructure upgrades, and position Delhi Airport as a more attractive hub for international travel.