India Lifts Domestic Airfare Cap
The Ministry of Civil Aviation India has announced the removal of the temporary fare cap on domestic flights, effective March 23, 2026. With this decision, airlines regain full flexibility in ticket pricing.
The cap had been introduced on December 6, 2025, following major operational disruptions at IndiGo, which led to reduced capacity and sudden spikes in ticket prices. The goal was to protect passengers from excessive fares during that period.
According to the ministry, market conditions have stabilized, and capacity has largely recovered—making the cap no longer necessary. However, airlines have been urged to act “responsibly and reasonably” in pricing, ensuring fares remain transparent and aligned with market conditions.
Officials also warned that regulatory measures could return if abnormal price surges are observed during peak demand or disruptions. The government confirmed it will continue to monitor ticket prices in real time.
The move comes at a time when global aviation costs are rising, particularly due to higher jet fuel prices linked to tensions in the Middle East—prompting many airlines to introduce or increase fuel surcharges.
