The Airports Economic Regulatory Authority (AERA) has approved the revised rates of the User Development Fee (UDF), which will come into effect from Friday, May 16, 2025, and remain in place until March 31, 2029. Domestic passengers departing from Chhatrapati Shivaji Maharaj International Airport (CSMIA) will now have to pay an additional Rs 175 as UDF, while international travellers will be charged Rs 615. For arrivals, domestic flyers will be charged Rs 75, and international flyers will pay Rs 260.
Mumbai airport will now impose the UDF on both arrivals and departures—something most Indian airports do not do. Mumbai International Airport Limited (MIAL), which is managed and operated by Adani Airport Holdings, had proposed an increased UDF of Rs 325 for domestic and Rs 650 for international departures. Although AERA approved a slightly reduced hike, the revised fee is expected to generate significant revenue for infrastructural development.
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According to a report by The Indian Express, the increased UDF will help the airport raise Rs 10,000 crore for its five-year capital expenditure plan. This plan includes the redevelopment of Terminal 1, digital system upgrades at Terminal 2, the adoption of smart passenger technologies, and sustainability initiatives such as electrification and achieving net-zero emissions by 2029.
MIAL has also proposed a 35% reduction in airline landing and parking fees, which may help airlines control ticket prices. However, the actual impact on fares will depend on whether airlines absorb the additional cost or pass it on to passengers.