Govt slashes airport landing and parking charges by 25%, airlines to save ₹400 crore

The Ministry of Civil Aviation has directed a 25% reduction in landing and parking charges for all domestic flights at major and non‑major airports for three months, a move expected to help airlines save approximately ₹400 crore amid rising fuel costs and geopolitical disruptions linked to the West Asia crisis .

The move follows earlier Government measures capping Aviation Turbine Fuel (ATF) price increases at 25% for domestic operations, even as global jet fuel prices have surged from around $85-$90 per barrel to $150-$200, nearly doubling airline fuel expenses. Fuel accounts for nearly 40% of operating costs, forcing carriers such as Air India, IndiGo, and Akasa Air to impose or raise fuel surcharges, ranging from ₹275 to ₹899, contributing to higher ticket prices.

Civil Aviation Minister Shri Ram Mohan Naidu said the Government is committed to making flying affordable and convenient while supporting carriers facing unprecedented challenges. The Airports Economic Regulatory Authority of India (AERA) has mandated the 25% reduction at 34 major airports, while the Airports Authority of India (AAI) applies the same at non‑major airports.

Revenue shortfalls during the period will be adjusted in future tariff reviews. Industry estimates suggest airlines could save about ₹400 crore over three months. Although the reduction lowers operational costs, analysts caution it may not immediately reduce fares, as ticket pricing depends on multiple factors including fuel costs and demand patterns. Current domestic fares range from ₹2,500-₹4,500 for short sectors and ₹6,000–₹12,000+ for longer routes.

The Government will monitor the sector and review the three‑month period, taking further measures if needed to ensure the viability of operations and safe, affordable air travel for passengers nationwide.