Act responsibly: Govt withdraws domestic airfare caps imposed after IndiGo fiasco

The government has withdrawn temporary domestic airfare caps from March 23, 2026, citing stabilised operations and restored capacity. Airlines have been asked to maintain fair, transparent pricing, with authorities warning of strict action if fares rise excessively.

In Short

• Caps were imposed in December to control airfare surge after IndiGo disruptions
• After cap withdrawal, Govt has urged airlines to keep fares reasonable, transparent
• Govt has warned airlines against unjustified fare hikes during peak or disruptions

The Ministry of Civil Aviation has withdrawn the temporary fare caps imposed on domestic airfares, citing stabilisation in flight operations across the sector.

In the order, Ministry said the caps, which were introduced on December 6, 2025, were aimed at containing abnormal surges in ticket prices following large-scale flight disruptions by IndiGo, while also safeguarding passenger interests and ensuring affordability during a period of constrained capacity.

With operations now normalised and capacity restored, the government has decided to withdraw the fare caps with effect from March 23, 2026.

However, the Ministry has directed airlines to maintain pricing discipline and act responsibly. It emphasised that fares must remain reasonable, transparent, and aligned with market conditions, ensuring that passenger interests are not adversely impacted.

The government also warned that any instance of excessive or unjustified surge in airfares, especially during peak demand periods, disruptions, or exigencies, will be viewed seriously. It said that airfare trends will continue to be monitored closely on a real-time basis.

The Ministry further said that it reserves the right to take appropriate regulatory or administrative measures, including the possible reintroduction of fare controls or other interventions, if required in the public interest.

The order was issued with the approval of the competent authority and has been forwarded to the Director General of Civil Aviation (DGCA) with a request to monitor airfares across the sector.

The Ministry of Civil Aviation (MoCA) imposed emergency caps last year on domestic airfares following one of the country’s worst aviation disruptions in recent years. The move came after IndiGo cancelled thousands of flights due to a pilot-rostering crisis, triggering a surge in ticket prices on busy routes and forcing the government to intervene.

Under the earlier imposed fare caps, one-way economy fares for flights up to 500 km couldn't exceed Rs 7,500. Routes between 1,000 and 1,500 km, such as Delhi-Mumbai, were capped at Rs 15,000, while fares for sectors over 1,500 km have been set at Rs 18,000.

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