irfares in India may soon become costlier after the government decided to remove the temporary fare cap imposed on airlines. The Ministry of Civil Aviation announced that the price limit on domestic flight tickets will be withdrawn from March 23 as the situation in the aviation sector has stabilised.
The fare cap was introduced in December after major disruptions at IndiGo led to mass cancellations and a sudden spike in ticket prices across several routes. With operations now normalising and capacity improving, the government has decided to restore pricing flexibility for airlines.
Government says operations have stabilised
In an official statement, the Ministry of Civil Aviation said the decision was taken after reviewing the current situation in the aviation sector. According to the ministry, flight operations have stabilised and airlines have restored capacity that was affected during the disruption period.
The government had earlier imposed the cap to prevent sudden and excessive increases in ticket prices when the supply of flights was limited. During that period, ticket prices on some major routes had surged sharply, with fares reaching as high as Rs 40,000 to Rs 70,000 for a one-way journey.
Under the temporary rule, airlines could charge a maximum of Rs 18,000 for a one-way ticket on longer routes, while shorter flights of up to 500 km had a lower cap starting at Rs 7,500.
Airlines had raised concerns
The decision to remove the cap also comes after airlines raised concerns about financial pressure. Airline companies, through their industry groups, warned the government that continued price restrictions could force them to reduce flights on certain routes or delay expansion plans.
Airlines have been facing rising operating costs, especially due to high aviation turbine fuel (ATF) prices. In addition, some flights have become longer because airlines are avoiding certain airspaces due to regional tensions, including closures over Pakistan. This has increased fuel consumption and overall operating costs.
Government warns airlines on pricing
Even though airlines will now have the freedom to set ticket prices, the government has warned them against charging excessively high fares. The Ministry of Civil Aviation said airlines must maintain pricing discipline and ensure fares remain reasonable and transparent for passengers.
