Kempegowda Airport Fees Extended: AERA Maintains UDF Amid Revenue Concerns

 Passengers flying out of Bengaluru’s Kempegowda International Airport will see no relief in aeronautical charges, as AERA has decided to maintain the current tariff structure through Q4 FY26. The regulator noted that Bengaluru International Airport Ltd (BIAL) is facing revenue under-recovery due to increased transfer passengers and heavy capital expenditure aimed at expanding capacity from 51.5 million passengers per annum (MPPA) to 80 MPPA by 2031. Traffic projections for FY26 have also been revised downward to 46 million, compared to earlier estimates of 49.4 million. The continuation of UDF is expected to support BIAL’s financial stability while major infrastructure projects are underway to position Bengaluru as a hub airport.  

Notable updates  
• UDF extended: ₹550 for domestic passengers, ₹1,500 for international passengers until March 31, 2026  
• AERA cites revenue under-recovery and capital expenditure as key reasons  
• BIAL revises FY26 traffic forecast to 46 million passengers (down from 49.4 million)  
• Expansion plan: capacity to grow from 51.5 MPPA to 80 MPPA by 2031  
• Landing charges remain unchanged for domestic and international flights  

Impact  
The decision underscores the financial pressures of airport expansion and highlights the balancing act between passenger affordability and infrastructure investment.  

Sources: Moneycontrol