The mandated reduction in landing and parking charges at airports will have 1-2 per cent impact on their annual revenue and is largely credit neutral for operators, India Ratings and Research said in its analysis on Tuesday.
Strong liquidity and non-aeronautical revenue will help airports balance the impact of mandated 25 per cent reduction, it added.
On April 7, the Airports Economic Regulatory Authority announced a 25 per cent reduction in landing and parking charges for domestic flights at major airports in the country for three months. The reduction in airport tariff is one of steps taken by government to cushion the impact of West Asia crisis on aviation sector.
Overall, the landing and parking charges ( for domestic and international flights) account for an average of around 20 per cent of the total airport revenues, and the 25 per cent reduction in charges for a three‑month period is estimated to result in a revenue moderation of 1-2 per cent.
“While the temporary measure impacts revenues by just 1-2 per cent, strong liquidity and non-aeronautical income help balance the effects. However, any extension beyond the initial three months could weigh on aeronautical revenues. Additionally, the broader economic environment should be considered, as changes in passenger demand and airline operations could further impact the airports,” said Suryanarayanan S, Senior Analyst, India Ratings & Research.
Along with reduced airport tariff, government has extended price relief for fuel too. Price hikes in Aviation turbine fuel (ATF) for scheduled domestic flights has been limited to 25 per cent. The government is also considering a new version of the Emergency Credit Line Guarantee Scheme for distressed sectors. Airlines may get up to ₹5,000 crore credit under the proposed scheme.
“The primary focus of the government in the aviation sector has been to make flying a more affordable and convenient travel option for passengers. Even in the prevailing challenging situation, when global air operations are impacted, we have ensured that cancellations and rising fuel costs do not severely affect the operations of our domestic carriers. While ATF costs globally have risen by more than 100 per cent, we have passed on only a moderate increase capped at 25 per cent,” Civil Aviation Minister Ram Mohan Naidu Kinjarapu said last week.
Published on April 14, 2026