Hyderabad flyers paid ₹2,500 crore in UDF over four years as fees surge fivefold
HYDERABAD: Passengers departing from Hyderabad have paid nearly ₹2,500 crore in User Development Fee (UDF) over the past four years, according to data from the Ministry of Civil Aviation (MoCA).
Figures show annual UDF collections rose from ₹80 crore in FY 2020-21 to over ₹1,000 crore in FY 2024-25. The increase reflects a sharp recovery in air traffic after the pandemic and revised tariff structures.
The Airports Authority of India (AAI) states that the UDF, also called Passenger Service Fee (PSF), is collected as part of the airfare and remitted to the airport operator.
Greenfield airports such as Hyderabad and Bengaluru levy the fee to bridge viability gaps and recover infrastructure investments.
Domestic UDF rises from ₹281 to ₹750
The financial burden on passengers has increased significantly since FY 2020-21. The domestic UDF at Hyderabad airport has risen from ₹281 per passenger in 2020-21 to ₹750 at present.
For international departures, the fee increased nearly fivefold during the same period, from ₹393 to ₹1,500 per passenger.
The Centre constituted the Airports Economic Regulatory Authority of India (AERA) to determine tariffs at major airports.
“AERA determines aeronautical charges, such as landing and parking fees and the UDF, by considering factors like return on investment for aeronautical assets, operating expenditure, depreciation, and tax for a five-year control period. The regulator aims to optimally balance the interests of service providers and end-users, ensuring the airport operator maintains and operates the facility with a reasonable return on investment,” said Murlidhar Mohol, minister of state for civil aviation.
