The Ministry of Civil Aviation on Sunday announced it is withdrawing temporary caps on domestic airfares with effect from March 23, 2026, saying flight operations and capacity across the sector have stabilised. The order asks airlines to keep fares reasonable and transparent and warns that any sharp or sudden rise in ticket prices-particularly during peak travel periods-will be closely monitored and dealt with seriously. The ministry has forwarded the directive to the Directorate General of Civil Aviation (DGCA) for real‑time oversight.
The fare caps had been introduced on December 6, 2025, after a crisis of widespread flight cancellations by IndiGo led to a rapid surge in ticket prices. The emergency limits had capped one‑way economy fares at Rs 7,500 for routes up to 500 km, Rs 15,000 for 1,000–1,500 km sectors such as Delhi–Mumbai, and Rs 18,000 for journeys beyond 1,500 km.
In its order, the ministry said: “The prevailing situation has since stabilised, with restoration of capacity and normalisation of operations across the sector.” It emphasised that the easing of caps does not mean a free‑for‑all on pricing; airlines are required to ensure fares remain “reasonable, transparent and commensurate with market conditions, and that passenger interests are not adversely impacted.”
The government said airfare trends will continue to be tracked closely on a real‑time basis and that any sudden surge in fares will be viewed with utmost seriousness. The DGCA has been asked to monitor sectoral ticketing trends and report any irregularities to the ministry.
For passengers, the removal of caps restores market pricing but under the supervision of regulators: airlines can now set fares based on demand and costs, but must do so in a manner that safeguards affordability and consumer interest while facing ongoing scrutiny from the ministry and DGCA.
Original Source: https://www.firstpost.com/india/govt-removes-fare-caps-on-flights-asks-airlines-to-keep-prices-reasonable-13991974.html
Category: India
Tags:
Publish Date: 2026-03-22 12:28:00
