Airline companies in India can save upto Rs 400 crore amid rising fuel costs as the central government has announced a 25 per cent cut in aircraft landing
and parking charges for domestic flights for three months. The Ministry of Civil Aviation (MoCA) said the reduced charges will be implemented immediately, and the Airports Economic Regulatory Authority of India (AERA) will adjust any revenue shortfall faced by airports in future tariff cycles. Speaking on the development, Civil Aviation Minister Ram Mohan Naidu said the reduction in airport charges is aimed at containing airfare increases and supporting both airlines and passengers. “This is a significant intervention to provide relief to airlines grappling with increasing operational costs. Government is in touch with airlines, airport operators and the regulator," he said. Notably, the Airports Economic Regulatory Authority of India (AERA) will adjust any revenue shortfall faced by airports in future tariff cycles. AERA sets airport tariffs including the aircraft landing and parking charges for a five-year period, known as a control period. Airport operators can collect these fixed tariffs from all aircraft operators. These charges are revised at the end of each control period. Airports Authority of India (AAI) has been instructed to implement the same reduction at non-major airports across the country.
Will Your Airfare Drop?
There has been no immediate announcement from the airlines companies regarding the cut in airfare. After the Iran War, leading to spike in the Aviation Turbine Fuel (ATF) price, the global average jet fuel price rose to USD 195.19 per barrel for the week ending 27 March 2026, up from USD 99.40 at the end of February, recording a surge of close to 100%.
ATF, produced by refining crude oil, has seen simultaneous increases in both its crude oil component as well as the refinery margin, known as ‘crack spread’, with the latter having nearly tripled within three weeks.
Recently, after IndiGo Airlines,, Air India has announced revisions to its fuel surcharge structure across domestic and international routes.
Even after the spike in the ATF prices, the Government of India mandated a partial, staggered increase, capping the effective hike for domestic airlines at roughly 8.5% (approx. Rs 1.04 lakh/kl in Delhi) to shield airfares, while foreign airlines pay the full hike.
