India orders major airports to cut some charges by 25%, in relief to airlines

India’s airport tariff regulator has ordered major airports to cut landing and parking charges by 25% for three months for domestic flights, offering relief to the country’s airlines that are under financial pressure due to the Iran war.

The move to cut charges comes after IndiGo and ⁠Air India sought the rationalisation of some fees levied by airports. The country’s two largest airlines are facing a double whammy from the Iran war, as Indian airlines are already barred from flying over Pakistan.

Airport and air navigation service charges were the third largest expense category for airlines ⁠globally after fuel and labour, according to airline lobby group International Air Transport Association.

IndiGo’s shares jumped as much as 10% on Wednesday, hitting the ⁠upper limit, as the broader airline sector rallied after the U.S. announced a two-week ceasefire with Iran.

The Airports ⁠Economic Regulatory Authority of India (AERA), acting on the government’s directions, said the temporary reduction ⁠in charges will apply immediately and any under-recoveries in revenue will be addressed in future tariff reviews.

Source: Reuters