Flying from Mumbai? Expect to Pay More Starting Next Year

How Will UDF Hike Impact Passengers at Mumbai Airport

If approved, international passengers will see their UDF jump from Rs 187 to Rs 650, while domestic passengers, who currently pay no UDF, will be charged Rs 325. This means the tickets are going to get more expensive by following amounts:

Domestic Passengers – Rs. 325
International Passengers – Rs. 463

The proposed tariff plan has been submitted to the Airport Economic Regulatory Authority (AERA) for approval. A source close to the development stated, “The proposed tariff card is in line with what the regulator has approved for MIAL.” AERA, which regulates tariffs for major airports in India, will hold a stakeholders’ meeting on March 25 in New Delhi to gather feedback before making a final decision.

While passengers may feel the pinch, airlines are set to receive some relief. MIAL has proposed a 35% reduction in landing and parking charges for the fourth control period (FY2024-2029). This move is expected to ease operational costs for airlines, which have been grappling with rising expenses.

Modernization and Expansion Plans
The proposed fee hike is part of MIAL’s broader plan to modernize and expand Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA). The airport, which handled 52.82 million passengers in FY2024, is undergoing significant upgrades to enhance passenger convenience and sustainability. Investments are being made in self-baggage drop systems, digital yatra, e-gates, facial recognition technology, lounge upgrades, and eco-friendly initiatives.

MIAL, a joint venture between the Adani Group (74%) and the Airports Authority of India (26%), has also outlined plans for the reconstruction of Terminal 1 and the expansion of Terminal 2 and the general terminal. These projects aim to increase the airport’s capacity and improve its infrastructure to meet growing passenger demand.

Balancing Costs and Growth
The proposed UDF hike comes as MIAL seeks to balance its revenue targets with the need for substantial capital expenditure. In June 2024, MIAL submitted a multi-year tariff plan to AERA, proposing a 675% increase in user fees to achieve a target revenue of Rs 38,724.90 crore and fund a capex of Rs 17,439.38 crore. However, AERA approved a reduced capex of Rs 7,832 crore and allowed an 18.8% fee hike starting April 1, 2025.

As the March 25 stakeholders’ meeting approaches, all eyes are on AERA’s final decision. For now, passengers and airlines alike are bracing for changes that could reshape the cost dynamics of flying from Mumbai Airport.