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

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 conflict, 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.