Unpacking Airline Ticket Prices: Why Do Air Passengers Pay 'CUTE' Fees?

When booking an airline ticket, the price you see isn’t just the base fare. Several additional charges may be included in your ticket price, each with its own purpose. From UDF to CUTE, these fees can add up, leaving many travelers puzzled. Here’s a detailed breakdown of the various fees you might encounter on your airline ticket.

Base fare explained

The base fare, sometimes labeled as 'Airfare Charges,' covers the cost of your seat on the plane without including taxes, additional fees, or optional services. This amount typically includes only your default seat and a minimal carry-on bag, excluding seat selection and checked baggage fees.

Aviation security fee (ASF)

The ASF, or Aviation Security Fee, is a charge for the security services provided by the Central Industrial Security Force (CISF) at most major Indian airports. This fee is not applied to children under two years old, diplomatic passport holders, Indian Air Force personnel on duty, or airline crew members.

Passenger service fee (PSF)

According to the Airports Authority of India (AAI), the Passenger Service Fee (PSF) covers the cost of airport security and passenger amenities. Unlike the UDF, which is used for infrastructure upgrades, the PSF is allocated for maintaining existing facilities and is a standard fee across all airports.

User development fee (UDF)

The User Development Fee (UDF) supports new airport projects and infrastructure improvements. This fee is applied mainly at greenfield airports—newly constructed facilities without prior infrastructure. For example, current UDF rates in India are:

Bengaluru Airport: ₹260 for domestic, ₹1070 for international

Hyderabad Airport: ₹375 for domestic, ₹1000 for international

Delhi Airport: ₹200 for domestic, ₹1300 for international

Mumbai Airport: ₹100 for domestic, ₹600 for international

Common User Terminal Equipment (CUTE) Fee

The CUTE fee, or Common User Terminal Equipment fee, covers the use of airport amenities like metal detectors and escalators. This fee typically ranges from ₹50 to ₹100 and may also be listed as a passenger handling fee.

Convenience fee

This fee is charged for the convenience of booking your ticket through various platforms, including airline websites, airport counters, and third-party booking servis.

Regional connectivity fee

Implemented under the Regional Connectivity Scheme (RCS) by the Ministry of Civil Aviation, this fee is applied to flights with a maximum take-off weight exceeding 40 tonnes. The funds collected from this fee support the development of underserved domestic routes and airports.

Understanding these fees can help clarify the total cost of your ticket and ensure you’re informed about where your money is going.