The Civil Aviation Ministry has withdrawn temporary caps on domestic airfares from March 23, citing stabilised operations, while directing airlines to keep prices reasonable and warning that any sharp surge, especially during peak travel periods, will be closely monitored.
The Ministry of Civil Aviation has decided to withdraw the temporary fare caps imposed on domestic airfares, citing stabilisation in flight operations across the sector from Monday.
The Ministry has decided to withdraw the fare caps with effect from March 23, 2026. It was done in order when the Ministry said that the caps were introduced on December 6, 2025 which were aimed at containing the rapid surge in price tickets following the chaos by
IndiGo.
Safeguard public interest
The order aims to safeguard passenger interest and ensure affordability during a period of constrained capacity.
“The prevailing situation has since stabilised, with restoration of capacity and normalisation of operations across the sector,” the Indian civil aviation ministry said in its order.
The Ministry has decided to maintain the stabilisation of
price tickets and act responsibility. It further emphasised that fares must remain reasonable, transparent, and aligned with market conditions, ensuring that passenger interests are not adversely impacted.
Monitor airfares across the sector
The government also highlighted that any
sudden surge in the airfares, especially during the peak periods will be viewed with utmost seriousness. It said that airfare trends will continue to be monitored closely on a real-time basis.
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 on domestic airfares following one of the worst aviation disruptions in recent times. The action was taken after IndiGo cancelled thousands of flights due to the pilot-roastering crisis and leading to a surge in ticket prices forcing the government to intervene in the issue.
Under earlier fare caps, one-way economy tickets were limited to Rs 7,500 for routes up to 500 km, Rs 15,000 for 1,000-1,500 km sectors like Delhi-Mumbai, and Rs 18,000 for flights covering distances beyond 1,500 km.
The government’s order instructs airlines to ensure fares remain “reasonable, transparent and commensurate with market conditions, and that passenger interests are not adversely impacted.”
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