Hyderabad Airport Domestic UDF Slashed to ₹515 as AERA Issues New 2026–2031 Tariff Order

Air travelers flying out of Rajiv Gandhi International Airport in Hyderabad will receive immediate financial relief starting September 1, 2026, as the Airports Economic Regulatory Authority slashes domestic User Development Fees from ₹750 down to ₹515.

HYDERABAD, India — The Airports Economic Regulatory Authority of India (AERA) has issued its tariff order for Rajiv Gandhi International Airport (HYD) at Shamshabad, establishing a revised pricing framework for the fourth control period spanning September 1, 2026, to March 31, 2031. Under the new regulatory mandate, departing domestic User Development Fees (UDF) will be reduced from ₹750 to ₹515, while international departing UDF will drop from ₹1,500 to ₹1,030.

The tariff restructuring follows a detailed evaluation of the Aggregate Revenue Requirement submitted by airport operator GMR Hyderabad International Airport Ltd. (GHIAL).

Because domestic travelers account for approximately 82 per cent of total passenger traffic at the Southern hub, the substantial reduction in aeronautical levies will directly lower airfare costs for millions of regional flyers.

AERA Tariff Order Restructures Passenger Levies for 2026–2031 Control Period

The newly issued tariff order reflects AERA's mandate to balance airport infrastructure funding with consumer affordability.

GHIAL had initially requested higher financial allocations to cover capital expansion projects, operational overheads, and target returns on equity. However, AERA’s independent audit rationalized baseline yield calculations, determining that lower UDF rates would stimulate higher passenger volumes while maintaining airport financial viability.

The tariff order establishes a phased multi-year pricing structure designed to adjust dynamically over the five-year control period.

Hyderabad Airport Tariff Order & Phased UDF Rates Benchmark Matrix

The reference table below details the approved UDF rates, disembarking fees, airline landing charges, and multi-year control period timelines for Rajiv Gandhi International Airport:

Regulatory Category	Previous Statutory Rate	Approved Baseline Rate (Sept 1, 2026)	Multi-Year Control Period Trajectory (2026–2031)
Domestic Departing UDF	₹750 per passenger	₹515 per passenger	₹515 (H1 26/27) ➔ ₹555 ('27/28) ➔ ₹620 ('28/29) ➔ ₹670 (Oct '29) ➔ ₹415 (End)
International Departing UDF	₹1,500 per passenger	₹1,030 per passenger	Phased incremental adjustments conclude with periodic reductions
Domestic Disembarking Fee	Standard baggage/transit levy	₹220 per passenger	Phased trajectory scaling down to ₹175 per passenger
Domestic Airline Landing Fee	Standard MT charge	₹435 per Metric Tonne	Operational cost baseline for domestic air carriers
Int'l Airline Landing Fee	Standard MT charge	₹630 per Metric Tonne	Operational cost baseline for international airlines
Domestic Passenger Share	82% of total HYD traffic	Primary regulatory beneficiary	Direct ticket cost reduction across domestic routes

Significant Cost Relief for Domestic Passengers Representing 82% of Traffic

The primary beneficiaries of AERA's tariff reduction are domestic passengers, who represent roughly 82 per cent of the total passenger throughput at Shamshabad.

Starting September 1, 2026, the ₹235 reduction in domestic departing UDF (from ₹750 to ₹515) will be automatically reflected as a lower tax line item on airline ticket bookings. For an international departing passenger, the ₹470 fee cut (from ₹1,500 to ₹1,030) provides noticeable savings on long-haul and regional routes.

Travel industry analysts expect the lower tax burden to stimulate leisure and business travel across key domestic corridors connecting Hyderabad with Delhi, Mumbai, Bengaluru, Chennai, and Kolkata.

Phased Multi-Year UDF Trajectory and Disembarking Fee Adjustments

AERA's tariff order outlines a phased, dynamic UDF structure across the five-year control period rather than a static single fee:

• Initial Phase (Sept 1, 2026 – March 31, 2027): Domestic departing UDF set at ₹515.
• Middle Phase (2027 – 2029): Domestic UDF adjusts to ₹555 in 2027–28, ₹620 in 2028–29, and reaches ₹670 up to October 2029 to support scheduled airport terminal expansion projects.
• Final Phase (Late 2029 – March 31, 2031): Domestic UDF drops sharply to a low of ₹415 per departing passenger.

Corresponding domestic disembarking fees commence at ₹220, scaling before dropping to ₹175 toward the conclusion of the control period.

Airline Landing Charges Reduced to ₹435 Domestic and ₹630 International

In addition to passenger UDF reductions, AERA established competitive aeronautical landing charges for airlines operating at Shamshabad.

Initial landing fees are capped at ₹435 per metric tonne for domestic flights and ₹630 per metric tonne for international operations.

By establishing predictable, rationalized landing costs, AERA encourages domestic carriers (such as IndiGo, Air India, and Akasa Air) and international airlines to add new flight frequencies and launch additional non-stop routes out of Hyderabad.

Practical Implications for Air Passengers and Travel Operators

For air travelers and travel agencies, the revised tariff order results in immediate savings on e-ticket purchases.

From an aviation ecosystem perspective, reducing airport fees enhances Hyderabad's competitiveness as a major hub airport in South-Central India, competing with Bengaluru (BLR) and Chennai (MAA).

Airlines are expected to pass on the full benefit of the reduced aeronautical taxes to consumers, leading to more competitive base fares.

Traveler Guidance: Understanding Revised Airfare Taxes at Shamshabad

Passengers booking flights originating from or connecting through Hyderabad should keep these points in mind:

• Check Ticket Tax Line Items: Verify that e-tickets for flights departing on or after September 1, 2026, reflect the reduced ₹515 domestic UDF rate.
• Plan Outbound Travel Timing: Take advantage of lower UDF rates during the initial September 2026 – March 2027 window before scheduled multi-year incremental adjustments.
• Leverage Expanding Domestic Connections: Explore new regional flight routes out of Shamshabad as airlines expand schedules following reduced landing charges.
• Monitor Future Control Period Revisions: Note that UDF rates will decrease significantly to ₹415 toward the final phase of the 2026–2031 control period.

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