In a move that is likely to make air travel costlier, the Ministry of Civil Aviation on Saturday decided to remove the temporary cap on domestic airfares from March 23, according to an official order. The cap was imposed following the IndiGo fiasco in December last year.
The fare cap had been imposed in the wake of widespread disruptions to IndiGo flights in December 2025, which had triggered concerns over price surges during the period. With operations stabilising since then, the ministry has now moved to lift the restrictions, allowing airlines greater flexibility in pricing domestic tickets.
The removal also comes at a time when airlines are facing operational disruptions on international routes due to the ongoing West Asia conflict.
Keep fares reasonable: Govt tells airlines
In its order, the Ministry of Civil Aviation said airlines must maintain pricing discipline and act responsibly. "Airlines shall ensure that fares remain reasonable, transparent and commensurate with market conditions, and that passenger interests are not adversely impacted," it said.
The ministry added that any instance of excessive or unjustified surge in fares, especially during peak demand, disruptions or exigencies, would be viewed seriously. It also noted that airfare trends are being monitored on a real-time basis.
According to the order, the temporary caps on domestic airfares were imposed on December 6 following an abnormal spike in ticket prices caused by large-scale disruptions in IndiGo operations.
"... The prevailing situation has since stabilised, with restoration of capacity and normalisation of operations across the sector. Upon review, it has been decided that the fare cap imposed vide the aforesaid letter shall stand withdrawn with effect from 23rd March, 2026," the order said.
IndiGo fiasco
The ministry had imposed emergency caps on domestic airfares last year following one of the country’s most severe aviation disruptions in recent times. The decision came after IndiGo cancelled thousands of flights due to a pilot rostering crisis, leading to a sharp spike in ticket prices on key routes and prompting government intervention.
Under the capped fare structure, one-way economy tickets for flights up to 500 km were limited to ₹7,500. For routes between 1,000 and 1,500 km, including the Delhi-Mumbai route, fares were capped at Rs 15,000, while sectors exceeding 1,500 km had a ceiling of Rs 18,000.
