Government will remove the cap on air fares

Government will remove the cap on air fares

Indigo

Representative image from file.

The government has lifted the temporary cap imposed on domestic airfares following widespread flight disruptions involving IndiGo in December last year, news agency PTI reported on Saturday, citing an order issued by the Civil Aviation Ministry.

The ministry said the restrictions will be withdrawn from March 23, 2026, after reviewing the current operating conditions, PTI reported. The decision comes as airlines grapple with disruption on international routes amid the ongoing conflict in West Asia.

Despite the cap being lifted, the ministry asked airlines to maintain pricing discipline and operate responsibly.


“Airlines shall ensure that fares remain reasonable, transparent and in line with market conditions and do not adversely affect passenger interests,” the order said, as quoted by PTI.

The ministry has also warned against sharp hikes in fares, saying any “excessive or unreasonable jump” in ticket prices, especially during peak demand, disruptions or exigencies, will be taken seriously.

It added that airfare trends are being monitored in real time to check irregular pricing.

The fare cap was imposed on December 6 to prevent a sharp rise in ticket prices following massive disruption in IndiGo’s operations. The ministry said the situation has improved, capacity has been restored and operations have returned to normal across the region.

According to PTI, the order said, “…the current situation has stabilized with the restoration of capacity and normalization of operations across the sector. After review, it has been decided that the fare cap…shall be withdrawn with effect from March 23, 2026.”

first published: 21 March 2026 | 11:11 pm First

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