GMR Airports shares up 4% after AERA approves 148% tariff increase for Delhi Airport

AERA has introduced a variable User Development Fee (UDF) for international passengers, while domestic UDF remains unchanged. The new tariffs will take effect from April 16, 2025.

GMR Airports has said AERA has accepted various principles of variable tariff plan as proposed by the Delhi airport and accordingly, UDF has been split across both embarking and disembarking passengers.

“The same has been further bifurcated into Domestic and International passengers with a differential rate for economy and business class international travellers,” the company said in a regulatory filing late on Saturday.

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GMR Airports’ subsidiary Delhi International Airport Ltd (DIAL) operates the Indira Gandhi International Airport (IGIA) in the national capital.

“In line with the public consultation Paper issued on January 31, 2025, AERA has increased the existing aeronautical tariff by (approx) 148 per cent.

“Against the existing Yield Per Pax of (approx) Rs 145 valid under 03rd control period, the nominal yield per pax has been increased to Rs 360 throughout the balance four years of control period valid till March 31, 2029,” the filing said.

The filing also said the landing charges for wide-body aircraft for scheduled airline operators who will operate direct flight to new international destinations have been waived off.

This will help encourage more international long-haul flights and in making the airport an hub.

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Among other aspects, GMR Airports said AERA has taken cognizance of the TDSA judgement, dated July 21, 2023, wherein certain significant issues have been decided in favour of DIAL.

“However, since the said TDSAT order has been challenged by AERA in Supreme Court, AERA has decided to defer the implementation of the said TDSAT order till the matter attains finality in the proceedings before the Hon’ble Supreme Court,” it noted.

The company also said that as per Supreme Court judgement, dated July 11, 2022, in the matter of tariff order for the first control period, AERA has given effect in the order towards computation of corporate tax on aeronautical earnings in the present fourth control period of the tariff order.

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