Bengaluru: Air passengers flying out of Kempegowda International Airport could see a reduction in the airport-related component of their ticket prices from September 1 after the Airports Economic Regulatory Authority of India (AERA) sharply revised the User Development Fee (UDF) for the next five-year control period.
Under the tariff order issued for Bengaluru International Airport Ltd (BIAL), the UDF for domestic passengers embarking from Bengaluru will fall to ₹300 from the current ₹550, a reduction of ₹250 or about 45%. For international departing passengers, the fee will come down to ₹997 from ₹1,500, a reduction of ₹503 or about 34%.
The revised tariff will take effect from September 1, 2026, and the rates will remain unchanged until April 30, 2030. A further reduction has been approved for the final 11 months of the control period, with the domestic embarking UDF falling to ₹160 and the international embarking UDF to ₹854 from May 1, 2030.
The immediate impact could be a reduction in the airport charge built into tickets for passengers beginning their journey from Bengaluru. For a domestic flyer, the UDF component could fall by as much as ₹250 before applicable taxes and other charges, while the reduction for an international departing passenger could be ₹503.
However, whether the final ticket price falls by the exact same amount will depend on how airlines pass on the revised airport charges. Airfares comprise the base fare, airline-imposed charges, taxes and several airport-related levies. A reduction in one component does not necessarily mean that the headline ticket price will automatically fall by the same amount.
There is also an important change in the structure of the new tariff. For the first time under the revised rate card, AERA has specified UDF for disembarking passengers as well — ₹125 for domestic passengers and ₹426 for international passengers from September 1. While the embarking charge is paid in connection with a passenger departing from Bengaluru, the introduction of disembarking charges could affect the overall airport cost associated with flights arriving at the airport, depending on how airlines recover such charges.
This means the impact may vary by journey. A passenger booking a one-way domestic ticket from Bengaluru stands to benefit directly from the sharp reduction in the embarking UDF. But for passengers travelling to Bengaluru, or for airlines calculating the total airport cost of a return journey, the new disembarking charge could partly offset the benefit.
The tariff order also revises other aeronautical charges, including landing and parking fees. These charges are paid by airlines and could eventually influence airline operating costs and ticket pricing, though their effect is less direct than the passenger-specific UDF.
For airlines, the new structure creates a mixed picture: the steep reduction in embarking UDF lowers the passenger charge at one of India’s busiest airports, but the introduction of disembarking UDF and changes in other aeronautical charges will alter the overall cost of operating flights to and from Bengaluru.
BIAL had earlier proposed a more modest reduction in UDF — to ₹450 for domestic and ₹1,215 for international departing passengers. AERA’s final order has approved a steeper cut, potentially providing greater relief to passengers flying out of Bengaluru.
The big question now is whether airlines will reflect the lower airport charge in ticket prices from September. If the reduction is fully passed through, a domestic ticket originating in Bengaluru could become cheaper by around ₹250 on account of the UDF component alone, while an international departure could see a reduction of about ₹503. But the final fare paid by passengers will continue to depend on airline pricing, demand, fuel costs and other taxes and charges.
