The Centre has lifted a temporary cap on domestic airfares imposed late last year to curb sharp price spikes, citing a broad stabilization in flight operations.
In an order dated 20 March, the civil aviation ministry said the fare caps introduced in December 2025 following widespread disruptions linked to IndiGo will be lifted with effect from 23 March. Mint has seen a copy of the order.
Emails sent to DGCA and the aviation ministry remained unanswered.
The government had stepped in earlier to prevent an “abnormal surge” in ticket prices after India’s largest airline cancelled over 5,000 flights, after the new pilot rest norms strained capacity. With operations now normalizing and capacity being restored, the ministry said the extraordinary measure was no longer required.
The move signals a return to market-driven pricing in India’s aviation sector, even as regulators keep a close watch to prevent a repeat of last year’s volatility. The removal of airfare caps also comes at a time when Indian airlines are grappling with the fallout of the West Asia crisis, as surging global fuel costs and airspace closures weigh on profitability.
Even as it rolls back the curbs, the government has issued a strong advisory to airlines on pricing behaviour. “Airlines are required to exercise pricing discipline and act responsibly,” the order said, adding that fares must remain “reasonable, transparent and commensurate with market conditions.”
The ministry also warned that any excessive or unjustified fare spikes, especially during peak travel periods or disruptions, will be viewed seriously. It added that airfare trends will continue to be monitored in real time, with the Directorate General of Civil Aviation tasked with overseeing pricing across the sector.
Separately, the order also leaves the door open for regulatory intervention if needed. The ministry said it reserves the right to reintroduce fare controls or take other administrative measures in the public interest.
