Hyderabad airport sees 30% cut in user fee under new tariff order
Passengers flying out of Hyderabad's Rajiv Gandhi International Airport will pay significantly lower charges from September 1, 2026, following a new tariff order by the Airports Economic Regulatory Authority of India (AERA).
The regulator has reduced the User Development Fee (UDF) for domestic departures by over 30%, bringing it down from ₹750 to ₹515 per passenger. For international departures, the fee has been fixed at ₹1,030, down from the current ₹1,500, and also lower than the airport operator's proposed ₹1,150.
The new tariff regime, valid until March 31, 2031, also revises landing charges. These are now set at ₹435 per metric tonne for domestic flights and ₹630 per metric tonne for international flights.
The move follows a major shift in how airport tariffs are computed. AERA has adopted an incremental Aggregate Revenue Requirement (ARR) approach for this tariff period. Under this method, the recovery of project-related costs through airport charges is linked to the actual completion and commissioning of major capital projects.
The intent, according to the regulator, is to prevent passengers from being burdened with upfront costs for large infrastructure projects that are yet to become operational. This includes significant investments such as new terminal buildings, runways, and taxiways, which are expected to be commissioned only in the latter half of the tariff period.
Hyderabad's airport operator, GMR Hyderabad International Airport Ltd, had proposed an aggregate revenue requirement of ₹27,851 crore. However, AERA approved a baseline ARR of ₹11,683.49 crore for determining tariffs. This translates to a baseline yield per passenger of ₹426.39, which formed the basis for setting the UDF, landing charges, and parking charges.
The order is expected to provide relief to passengers and airlines while ensuring that the airport's operational efficiency is maintained. The new tariff framework is designed to balance the interests of consumers with the need for sustainable airport development.,
