New Delhi: India’s aviation sector has received temporary relief after the Airports Economic Regulatory Authority of India (AERA) directed major airports to reduce landing and parking charges by 25 percent for domestic flights for a period of three months.
The move follows requests from the country’s largest carriers, including IndiGo and Air India, which had urged authorities to rationalise airport-related fees with mounting operational challenges. Airlines are currently grappling with rising costs linked to the ongoing Iran war, compounded by restrictions preventing Indian carriers from using Pakistani airspace.
Airport and air navigation service charges represent the third-largest expense category for airlines globally, after fuel and labour, according to the International Air Transport Association (IATA). The temporary reduction is expected to ease immediate financial strain on domestic carriers.
Market sentiment responded positively to the development. Shares of IndiGo surged as much as 10 percent, hitting the upper circuit, while the broader aviation sector also rallied following news of a proposed two-week ceasefire between the United States and Iran.
AERA stated that the reduced charges will take effect immediately, adding that any revenue shortfall faced by airport operators during this period will be addressed in future tariff revisions. The temporary tariff relief is also expected to translate into more stable airfares for domestic passengers, as airlines may pass on part of the cost savings to consumers.
Industry analysts note that while the measure is short-term, it provides crucial breathing space for carriers navigating volatile fuel prices, longer flight routes, and operational disruptions linked to the Iran war.
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