If you are a regular traveler from Delhi or Mumbai airports, your ticket prices may increase in the near future. This is because permission has now been granted to increase the fees levied at these two airports. The Tribunal TDSAT has delivered a significant ruling, allowing GMR, which operates Delhi Airport, and the Adani Group, which operates Mumbai Airport, to increase charges.
Non-flight services to be added to earnings
Previously, the rules regarding airport earnings only included income related to flights, such as landing fees, passenger service fees, and user development charges. But now, following the tribunal's decision, non-aeronautical income—such as parking fees, shop rentals, and advertising revenue—will also be counted towards the airport's total earnings.
Why ticket costs will increase
When the airport operator's total earnings are considered higher, they will have grounds to increase the charges on tickets. Airlines have to pay charges to the airport, and if the airport charges increase, it is obvious that the expenses of the airline companies will also increase. Airlines can recover this increased expenditure from passengers by including it in ticket prices.
Kotak's report indicates
According to a report by Kotak Institutional Equities, airport charges may increase by an average of 6 percent in the next 10 years. This will have a direct impact on the income of airline companies. For example, this could affect India's largest airline, Indigo, by approximately 3.4 percent. The company's total earnings were ₹80,803 crore in FY25.
GMR and Adani to benefit greatly
This decision has brought great relief to both GMR and Adani, the airport companies. GMR Airports' total earnings were ₹10,414 crore in FY25, while Adani Airports' earnings were around ₹10,224 crore. Now, when their non-flight income is also included, they will get an additional basis to increase charges.
New balance in the airline industry
Following this decision, a new balance may be established between airports and airline companies regarding fees. Airlines may now have to renegotiate fees with airport operators, as their operating costs will change. This will directly impact the industry's regulatory framework and fare structure.
Impact seen in the stock market
The impact of this decision was also seen in the stock market. Between July 1 and July 11, GMR Airports' shares saw a rise of about 5 percent. The interesting thing was that the Nifty 50 index declined during the same period. In other words, the market considered this decision positive for airport companies.
Passengers' pockets may be hit
If airlines have to pay more charges, they will add them to the prices of their services. That is, although there may be no change in the base fare of the ticket, the airport user charges and other fees may increase. Passengers may also have to pay more for parking, airport shuttles, food courts, and shops.
Impact on those running shops at the airport
The tribunal's decision will not only affect passengers but also traders running shops, brand outlets, and service stalls in the airport complex. If non-flight earnings are being used as a charge, then the rent of these shops is likely to increase.
This model may be implemented at other airports
Industry experts say that after Delhi and Mumbai, this model may also be implemented at other major private airports in the country. If this happens, air travel in other metro cities may become more expensive in the coming time. For now, this change will be implemented only at Delhi and Mumbai airports, but it can set an example for other cities as well.
