Changi Airport to increase charges for passengers & airlines from 2025 to fund upgrading works

Changi Airport will increase its airport charges progressively between 2025 to 2030 to fund upgrading works over the next six years.

Changi Airport Group (CAG) said the increase is aimed at passengers departing from or transiting through Singapore, and airlines operating at the airport, according to a press release on Nov. 7.

The move aims to fund the group's investment of S$3 billion for enhancement works in terminals 1 to 4.

Investment to improve services and fund airport upgrades

CAG said the investment will be used to "improve services", such as baggage handling, check-in, immigration and Skytrain connections between terminals, and replace end-of-life systems.

"The investments will help Changi Airport stay competitive and meet rising demand for air travel before Terminal 5 is operational in the mid-2030s," CAG added.

The increase will also accommodate other operating costs, such as manpower, and cover other significant investments made during the Covid-19 pandemic.

Some enhancement works include:

• The expansion of Terminal 1, 2 and check-in counter capacity in Terminal 3
• Skytrain subsystems will be replaced, including signalling and communications, which started operations in 2008 and are nearing end-of-life. New cars will also be added to provide additional capacity
• Upgrading of baggage handling systems at Terminal 1 to 3
• Additional check-in rows at Terminal 4 departure level
• A new rooftop Inter-Terminal Baggage Conveyance System connecting Terminal 1 to 3, creating a second pathway for passenger baggage to be transferred between the two terminals

CAG will also upgrade airside infrastructure and facilities, such as taxiways, contact stands, and aircraft parking stands.

Other enhancements include staff facilities, such as refresh pods to mitigate heat stress, lightning shelters upgrading for inclement weather, and improved staff lounges and rest areas.

Airport staff will also be upskilled to take on higher value roles and improve manpower productivity.

Increase in airport charges for passengers and airlines

Passengers

According to CAG, passenger fees will increase by about 1 per cent or less for an economy class ticket on most flights departing from or connecting through Singapore.

This is based on current ticket prices.

"The Civil Aviation Authority of Singapore (CAAS) will work with CAG to monitor the air hub’s performance to respond nimbly and make further adjustments if needed, to ensure the air hub’s competitiveness," CAG said.

For passengers departing from Changi Airport, the Passenger Service and Security Fee (PSSF) of S$46.40 will remain unchanged until Mar. 31 2027.

From Apr. 1, 2027, it will increase by S$3 annually for four years.

For transit passengers connecting at Changi Airport, the PSSF of S$6 will increase by S$3 annually from Apr. 1, 2025.

It will be further increased by S$1 annually for the subsequent three years.

The increase for transit passengers will apply to air tickets issued from Jan. 1, 2025, for travel from Apr. 1, 2025.

Airlines

For airlines operating at Changi Airport, the Landing, Parking and Aerobridge (LPA) charge will be adjusted annually from Apr. 1, 2025.

The charges will vary depending on the type of aircraft used.

Charges for a narrow-body Airbus A320 aircraft of S$1,200 per landing will increase annually by an average of S$110 for the first three years, and an average of about S$65 for the next three years.

The LPA charge for a wide-body Airbus A350 aircraft, of around S$3,600 will increase by S$290 per landing for the first three years, and an average of about S$190 for the next three years.

The Aviation Levy of S$8, which finances CAAS's operations, will remain unchanged until Apr. 1, 2027.

Following which, a one-time increase of S$2 will be implemented.

CAG said it will provide a 50 per cent rebate for six months from Apr. 1 to Sep. 30, 2025 to help airlines adjust to the increase.

The group added: "CAAS and CAG will continue to work with airlines that are committed to the Singapore air hub to support their plans to grow their networks."

Top photo via Changi Airport Group