FEES at Singapore’s Changi Airport will be raised from 2025 to fund a S$3 billion investment to improve airport services, as well as to cover higher operating costs and investments made during the Covid-19 pandemic.
Passenger fees are estimated to go up by 1 per cent or less for an economy-class ticket on most flights departing from or connecting through Singapore.
Civil Aviation Authority of Singapore (CAAS) director-general Han Kok Juan told the media on Thursday (Nov 7) that while travel has largely recovered, the airport has not been spared from increasing cost pressures.
The investment, made over six years, will enable Changi Airport to stay competitive and meet increasing travel demand ahead of the opening of Terminal 5 in the mid-2030s, he added.
Higher fees
From Apr 1, 2027, the passenger service and security fee (PSSF) paid by passengers departing from Changi will go up by S$3 each year, for four years. The fee is now at S$46.40, up from S$35.40 in 2022 when hikes were last announced.
The aviation levy, also payable by passengers and funds CAAS operations, will undergo a one-time increase of S$2 to S$10 on Apr 1, 2027.
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From Apr 1, 2025, the PSSF for transit passengers at Changi will rise S$3 each year, for three years. From Apr 1, 2028, it will go up by another S$1 a year for another three years.
The fee has remained at S$6 since 2015, and was last reviewed in 2018.
Airlines operating at Changi Airport will pay higher landing, parking and aerobridge (LPA) charges.
These vary by aircraft. For a typical narrow-body jet, such as an Airbus A320, the charge for each landing will rise by an average of S$110 a year for the three years from Apr 1, 2025. From 2028, it will rise by another S$65 per landing a year for the next three years. The current charge is around S$1,200 per landing.
For larger wide-body aircraft, such as the Airbus A350, the annual increase will be around S$290 for three years from Apr 1, 2025, and S$190 for three years from 2028. The current charge is S$3,600 per landing.
From Apr 1 to Sep 30 next year, CAG will provide an initial 50 per cent rebate on the increase in LPA charges.
Sprucing up
The S$3 billion will go towards improvements in all four existing terminals to expand capacity and improve the airport’s efficiency, passenger experience and working environment.
Most of this will cover the cost of replacing systems that have reached the end of their life, including in some Skytrain systems, said CAG representatives. There will also be upgrades to baggage handling, more check-in rows in Terminal 4, an expansion of Terminal 1’s immigration area, improved airside infrastructure, and better staff facilities.
Besides these improvements, the higher fees will help with the recovery of investments made during the pandemic – such as the expansion of Terminal 2 – when passenger fees and airline charges were frozen and planned increases suspended.
They will also help cover higher operating costs, such as for manpower and energy.
CAAS’ Han emphasised the importance of keeping Changi Airport competitive, noting that global aviation passenger volumes are expected to at least double between 2023 and 2043, with the Asia-Pacific contributing to more than half of this growth.
