Bengaluru Flyers May See Cheaper Airfares Under New Plan

India Manufacturing Review Team
Thursday, 25 June 2026

Synopsis: Bengaluru airport proposes an 18% reduction in user development fees for departing passengers from September 2026, aiming to lower air travel costs while supporting passenger growth and future infrastructure expansion.

Air passengers flying from Bengaluru may see lower ticket prices because Bengaluru International Airport (BIAL) is proposing an 18% dip in user development fees, for passengers departing from September 2026. Basically the idea is to file this change with the Airports Economic Regulatory Authority of India (AERA) so that the overall passenger charges come down , and also to keep traffic growth in step at the airport.

As per the proposal, the UDF for departing domestic passengers could fall to ₹1,450 from the current ₹1,550, while international departing passengers may have charges reduced to ₹1,215 from ₹1,500. If AERA gives the nod, the updated fees would stay in force from September 2026 to March 2029, pretty much as a fixed window.

BIAL says that cutting passenger charges in the near term could help improve passenger movement and also make the future tariff adjustments a bit more manageable. This is coming while the airport operator carries on with its expansion plans and is preparing for rising demand in one of India’s fastest growing aviation markets.

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The Kempegowda International Airport, Bengaluru, handled 44.16 million passengers in FY26, making it the third-busiest airport in India after Delhi and Mumbai. The airport operator has also planned an investment programme of ₹18,635 crore to expand infrastructure and improve capacity.

Since UDF is included in airfare calculations, passengers are likely to experience the impact through reduced overall ticket costs. The proposed reduction applies to departing passengers, while arriving passengers will continue to remain exempt from the charge.

The move is expected to improve Bengaluru airport’s competitiveness by making it a more attractive hub for airlines and travellers. Lower passenger charges could support increased air traffic and encourage greater connectivity from the city, which has emerged as a major technology and business centre.

The airport operator has also indicated that future tariff adjustments may be required as it recovers investments linked to infrastructure development. However, the current proposal focuses on providing relief to passengers during the upcoming control period while balancing long-term expansion needs.

The proposal highlights the changing dynamics of India’s aviation sector, where airports are focusing on improving passenger experience, expanding capacity, and maintaining competitive pricing. If approved, the fee reduction could provide some relief to travellers and strengthen Bengaluru’s position as a key aviation hub.

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