Tariff regulator asks Indian airports to cut some charges for airlines by 25%
According to the International Air Transport Association, airport and air navigation service charges rank as the third largest cost for airlines globally, after fuel and labour expenses.
- Apr 8, 2026,
- Updated Apr 8, 2026 4:27 PM IST
India's airport tariff regulator has directed major airports to reduce landing and parking charges by 25 per cent for domestic flights over the next three months. This move aims to provide financial relief to airlines facing pressure due to the ongoing conflict involving Iran.
The decision follows requests from IndiGo and Air India to rationalise certain airport fees amid challenges posed by the Iran war. Indian airlines are also affected by existing restrictions on flying over Pakistan, adding to their operational difficulties.
The Airports Economic Regulatory Authority of India (AERA), acting under government directives, stated that the temporary charge reduction would take effect immediately, according to a report in Reuters. Any revenue shortfall resulting from this cut will be addressed in future tariff reviews.
DON'T MISS | After IndiGo, Air India set to hike fares amid Iran war. Details here
According to the International Air Transport Association, airport and air navigation service charges rank as the third largest cost for airlines globally, after fuel and labour expenses.
This comes after IndiGo and Air India announced a revision in airfares due to higher fuel charges after an increase in aviation turbine fuel (ATF) prices.
IndiGo announced fuel surcharges of up to Rs 950 per sector on domestic routes and Rs 10,000 on long-haul international flights from April 2. Charges for intermediate distances range between Rs 400 and Rs 800.
Air India’s surcharges for domestic routes came into effect from April 8 and April 10 for key international routes. It revised its surcharge system for domestic flights, moving from a flat fee to a distance-based model. Passengers travelling on routes up to 500 km will incur an additional charge of Rs 299 per sector. For longer routes exceeding 2,000 km, the surcharge increased to Rs 899. On international routes, the surcharge will vary more significantly as there is no fuel price cap. Passengers flying to Europe will be charged $205 per sector, to North America and Australia $280, to West Asia $50, and to Southeast Asia $100.
India's airport tariff regulator has directed major airports to reduce landing and parking charges by 25 per cent for domestic flights over the next three months. This move aims to provide financial relief to airlines facing pressure due to the ongoing conflict involving Iran.
The decision follows requests from IndiGo and Air India to rationalise certain airport fees amid challenges posed by the Iran war. Indian airlines are also affected by existing restrictions on flying over Pakistan, adding to their operational difficulties.
The Airports Economic Regulatory Authority of India (AERA), acting under government directives, stated that the temporary charge reduction would take effect immediately, according to a report in Reuters. Any revenue shortfall resulting from this cut will be addressed in future tariff reviews.
DON'T MISS | After IndiGo, Air India set to hike fares amid Iran war. Details here
According to the International Air Transport Association, airport and air navigation service charges rank as the third largest cost for airlines globally, after fuel and labour expenses.
This comes after IndiGo and Air India announced a revision in airfares due to higher fuel charges after an increase in aviation turbine fuel (ATF) prices.
IndiGo announced fuel surcharges of up to Rs 950 per sector on domestic routes and Rs 10,000 on long-haul international flights from April 2. Charges for intermediate distances range between Rs 400 and Rs 800.
Air India’s surcharges for domestic routes came into effect from April 8 and April 10 for key international routes. It revised its surcharge system for domestic flights, moving from a flat fee to a distance-based model. Passengers travelling on routes up to 500 km will incur an additional charge of Rs 299 per sector. For longer routes exceeding 2,000 km, the surcharge increased to Rs 899. On international routes, the surcharge will vary more significantly as there is no fuel price cap. Passengers flying to Europe will be charged $205 per sector, to North America and Australia $280, to West Asia $50, and to Southeast Asia $100.