The government has decided to remove the temporary caps on domestic airfares starting March 23, 2026, stating that flight operations across the aviation sector have stabilised and capacity has been largely restored.
The Ministry of Civil Aviation clarified that these fare restrictions were originally introduced on December 6, 2025, in response to sharp increases in ticket prices caused by widespread flight disruptions, particularly those involving IndiGo. The caps were intended to protect passengers from unusually high fares during a period when flight availability was limited, and demand remained high.
With normalcy returning to operations and airlines restoring their schedules, the government has now withdrawn these limits. However, it has simultaneously issued clear directions to airlines to ensure responsible pricing practices. Carriers have been instructed to keep fares reasonable, transparent, and consistent with prevailing market conditions so that passengers are not adversely affected.
The Ministry has also cautioned airlines against exploiting peak travel periods or emergency situations to impose excessive or unjustified fare hikes. It stated that airfare trends will continue to be monitored closely in real time, and any irregularities will be taken seriously.
Additionally, the government has kept the option open to reintroduce fare controls or take other regulatory measures if necessary in the public interest. The directive has been communicated to the Director General of Civil Aviation (DGCA), which will oversee fare monitoring across the sector.
These fare caps were initially imposed after a major disruption in India’s aviation sector, when IndiGo cancelled a large number of flights due to a pilot rostering crisis. This led to a sudden spike in ticket prices on key routes, prompting government intervention.
Under the earlier system, one-way economy fares were capped based on distance. Flights up to 500 km had a maximum limit of ₹7,500, routes between 1,000 and 1,500 km—such as Delhi to Mumbai—were capped at ₹15,000, and flights covering distances beyond 1,500 km had an upper limit of ₹18,000.
