Hyderabad airport proposes arrival fee to support ₹13,975 crore expansion

GMR Hyderabad International Airport Ltd has proposed introducing an arrival fee for passengers at Rajiv Gandhi International Airport from 1 September 2026, alongside a reduction in departure charges, as part of its tariff proposal for the fourth control period.

According to PRESS Insider, the proposal has been submitted to the Airports Economic Regulatory Authority of India (AERA) for the period between FY27 and FY31. The revised tariff structure is designed to support the airport's planned ₹13,975 crore infrastructure expansion while keeping the combined passenger levy broadly unchanged.

If approved, the proposal would mark the first time passengers arriving at Hyderabad airport pay a dedicated airport charge.

Arrival fees proposed, departure charges set to fall

Under the proposed tariff framework:

• Domestic arriving passengers would pay ₹170.
• International arriving passengers would pay ₹350.
• The arrival charges would apply from 1 September 2026 to 31 March 2030.
• Domestic departure user development fee (UDF) would reduce to ₹580, down by about 23%.
• International departure UDF would fall to ₹1,150.

The revised structure would keep the overall passenger levy at around ₹750 for domestic travellers and ₹1,500 for international travellers. Instead of collecting the entire amount from departing passengers, the airport proposes distributing the charge between arrival and departure.

At present, passengers arriving at Hyderabad airport do not pay an airport development fee.

Expansion plan targets higher passenger capacity

The tariff proposal forms part of GMR Hyderabad International Airport's broader investment programme to expand the airport over the next three to four years.

According to the report, the operator plans to invest approximately ₹13,975 crore to build additional infrastructure, including a new terminal and a new runway.

The proposed investment includes:

• ₹12,275 crore towards expansion works.
• ₹1,700 crore for general capital expenditure.

The expansion is expected to increase the airport's annual passenger handling capacity from around 34 million passengers currently to 47 million by FY31.

The airport operator said the existing southern terminal is projected to exceed its planned handling capacity by 2030 without additional infrastructure.

Regulator to review proposal after consultation

For travellers, the proposal is expected to have a limited impact on the total amount paid if the combined levy remains unchanged. The primary difference would be the redistribution of charges between arriving and departing passengers.

The proposal also reflects a broader trend across India's privately operated airports, where operators are seeking tariff structures that support long-term infrastructure investment while balancing passenger affordability and airline interests.

According to a parliamentary reply cited by PRESS Insider, Hyderabad airport's domestic departure user development fee increased from ₹281 in FY21 to ₹750 in FY25 following multiple revisions.

AERA will take the final decision on the proposed tariff after completing the statutory stakeholder consultation process. The regulator's ruling will determine whether the revised passenger fee structure comes into effect from September.