KIA fee revamp: Departing passengers to pay less, but arrivals now face UDF

The Airports Economic Regulatory Authority of India (AERA) has announced a revised User Development Fee (UDF) structure for Kempegowda International Airport (KIA) in Bengaluru. The new tariff order, issued on Friday, lowers the UDF for departing passengers while introducing a separate charge for arriving passengers, a shift from the existing practice.

Under the revised structure, the UDF for domestic departing passengers will be reduced to ₹300 from the current ₹550. For international departing passengers, the fee will come down to ₹997 from the existing ₹1,500. However, the new order also imposes a UDF on arriving passengers — ₹125 for domestic arrivals and ₹426 for international arrivals.

These revised rates will come into effect from September 1, 2026, and will remain applicable until August 2029. Until then, the current UDF structure will continue to apply for both domestic and international departing passengers.

The Bangalore International Airport Limited (BIAL), which operates KIA, clarified that the combined charge for a domestic passenger — departing and arriving together — under the new structure will be ₹425. This is lower than the existing ₹550 charged only to a departing domestic passenger. Similarly, the combined international UDF will be ₹1,423, compared with the existing ₹1,500 for a departing international passenger.

BIAL said the introduction of an arrival-side UDF aligns with the approach adopted at other newly launched and major airports in India. AERA has determined that the charge should be shared between arriving and departing passengers, which the airport operator says does not result in an overall increase in the base UDF.

The tariff order pertains to the fourth control period from FY 2026-27 to FY 2030-31, covering significant infrastructure investments planned at the airport. A BIAL spokesperson stated that the order recognises projects such as Terminal 2 Phase 2, T2 Phase 2 Apron, airfield works, road and landside infrastructure, and other related aeronautical developments.

According to BIAL, certain incremental tariffs associated with major projects will become applicable only after the respective infrastructure is completed, commissioned, and put into use. This follows the process prescribed by AERA and ensures that passengers do not bear the cost of unfinished projects in advance.

Aviation analysts note that the revised UDF structure represents a balancing act between funding airport expansion and managing passenger costs. By distributing the charge across both arriving and departing passengers, the total levy per passenger journey is reduced, which could make air travel slightly cheaper for individual flyers.

Passengers travelling to and from Bengaluru will need to factor in the new arrival fees when planning their budgets, though the effective reduction for most travellers is modest. The airport, one of the busiest in India, continues to expand its capacity to handle growing air traffic.

The exact implications for airlines and ticket pricing will depend on how carriers incorporate the revised UDF into their fare structures. Typically, such airport charges are passed on to passengers as part of the ticket price, but the final impact on fares will be determined by market competition and airline policies.

BIAL has welcomed the tariff order, noting that it supports the airport's long-term growth plans while maintaining a “reasonable and fair” charge for passengers. The airport operator has committed to completing the key projects within the stipulated timeline, after which the tariff will undergo further modification.