The government has withdrawn temporary caps on domestic airfares, the civil aviation ministry said, with the removal taking effect from 23 March 2026. The caps had been imposed on December 6 last year after widespread flight disruptions at IndiGo that led to an abnormal surge in ticket prices.
In its order, the ministry said the decision follows a restoration of capacity and the normalisation of operations across the sector. “The prevailing situation has since stabilised, with restoration of capacity and normalisation of operations across the sector. Upon review, it has been decided that the fare cap imposed vide the aforesaid letter shall stand withdrawn with effect from 23rd March, 2026,” the order said.
The ministry stressed that the rollback does not relieve airlines of regulatory responsibilities. Carriers have been instructed to exercise pricing discipline and act responsibly, ensuring fares remain fair, transparent and commensurate with market conditions so that passenger interests are not adversely affected. “Airlines shall ensure that fares remain reasonable, transparent and commensurate with market conditions, and that passenger interests are not adversely impacted,” the order added.
Officials warned that any instances of excessive or unjustified fare surges-especially during peak demand, disruptions or other exigencies-would be taken seriously. The ministry said it will monitor airfare trends on a real-time basis to detect and address any irregular pricing behaviour.
The decision comes at a time when Indian carriers are also managing significant operational disruptions on international routes caused by the conflict in West Asia. While domestic capacity has stabilised since December, the ministry’s emphasis on vigilance signals continued government scrutiny as airlines face evolving external pressures.
For travellers, the removal of the cap means domestic ticket prices will again be set by market forces, subject to oversight. Passengers and consumer groups may watch the coming weeks for any sharp price movements, and the ministry’s real-time monitoring will be the barometer for whether further regulatory steps become necessary.
Original Source: https://www.firstpost.com/india/india-scraps-airfare-curbs-as-airlines-face-rising-fuel-costs-route-disruptions-13991893.html
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Publish Date: 2026-03-21 23:50:00
