Explained: User Development Fees And What It Means For Air Travellers

In a significant update for air travellers, Mumbai's Chhatrapati Shivaji Maharaj International Airport will soon see revised User Development Fees (UDF) for passengers, effective from May 16, 2025. The new fee structure, finalised by the Airports Economic Regulatory Authority of India (AERA), includes a hike in charges for domestic passengers and introduces a differential fee for international travellers based on travel class.

Under the new structure, departing domestic passengers will pay INR 175, a notable increase from the earlier INR 120 charged until August 2024. This revised domestic UDF will remain unchanged through the fourth control period until March 31, 2029. Meanwhile, international passengers will face varied charges depending on whether they are flying economy or business class, though the exact figures for each category are yet to be detailed publicly.

AERA has stated that this move aims to ensure a fair and equitable distribution of aeronautical charges among stakeholders, including passengers, airlines, and airport operators.

What Is A User Development Fee At Airports?

A User Development Fee (UDF) is a charge levied on air passengers by airports to fund infrastructure development and passenger amenities. It is typically added to the ticket price and collected by airlines on behalf of airport operators. It helps finance expansion projects, modernising terminals, and improving services.

The fee may vary for domestic and international travellers, and in some cases, by travel class. While it adds to travel costs, UDF ensures airports can meet growing passenger demands with better facilities and upgraded infrastructure over time.

What Does It Mean For Travellers?

The increase to INR 175 could slightly raise overall ticket prices for domestic passengers, particularly on budget airlines. International travellers, especially those flying in premium cabins, may see higher surcharges depending on the final class-based fee structure. However, AERA argues that this tiered approach aligns with usage and affordability, ensuring that infrastructure costs are proportionally borne.

(With inputs from multiple sources)