Singapore's Changi Airport will invest S$3 billion ($2.26 billion) over the next six years to improve services such as baggage handling and check-in in at its terminals one through four, it said on Thursday.

The airport will progressively raise airport charges between 2025 and 2030 to fund these investments and cater for higher operating costs.

To help airlines with the transition, a 50% rebate on increases in landing, parking and aerobridge charges will be given for the first six months.

Changi Airport said it will also increase passenger fees by about 1% or less for an economy class ticket on most flights departing from the city-state or connecting through it.

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

The Civil Aviation Authority of Singapore will work with the Changi Airport Group to monitor the air hub’s performance to make further adjustments if needed.

($1 = 1.3263 Singapore dollars)

(Reporting by Echha Jain in Bengaluru; Editing by Shilpi Majumdar and Mrigank Dhaniwala)