₹7,500 for up to 500 km: Govt caps domestic ticket prices after IndiGo chaos
The new caps, ranging from ₹7,500 to ₹18,000 depending on distance, apply immediately and cover all bookings except Business Class and UDAN flights.
The government has stepped in to curb spiralling air ticket prices, imposing temporary fare caps on domestic flights after massive disruptions triggered by IndiGo’s week-long operational meltdown.
The move comes after IndiGo cancelled at least 1,600 flights over the week, triggering nationwide chaos, shrinking capacity and leading to what the ministry of civil aviation called an “unreasonable surge” in fares across major routes. Follow IndiGo flight cancellation live updates
Govt announces temporary ceiling on airfares
In an order issued Friday, the ministry said airlines will not be allowed to charge beyond the notified ceiling for different stage lengths. The maximum fares set are:
- ₹7,500 for routes up to 500 km
- ₹12,000 for 500–1,000 km
- ₹15,000 for 1,000–1,500 km
- ₹18,000 for routes above 1,500 km
These limits exclude UDF, PSF and other taxes, and do not apply to Business Class or RCS-UDAN flights.
The order, issued with immediate effect, has been cleared by the competent authority. The Directorate General of Civil Aviation (DGCA) has also been instructed to “monitor and regulate” fares on the listed routes.
‘In public interest’, says govt
The ministry said the decision was taken “in public interest” and will remain in force until prices stabilise or a further review is conducted. The fare caps will apply to all bookings, whether made directly on an airline website or through online travel portals.
Airlines have been told to maintain adequate ticket availability across fare buckets and explore adding capacity on high-demand sectors. They must also avoid steep fare spikes on routes hit by cancellations and provide maximum support to affected passengers, including rebooking options where possible.
According to the order, the government has exercised its regulatory powers to ensure “fair” and “reasonable” fares and to prevent “opportunistic pricing” during the ongoing disruption.
IndiGo cancellations trigger fare shock
The intervention follows IndiGo’s large-scale cancellations after “mismanagement in planning the crew roster” following new Flight Duty Time Limitations (FDTL) implemented on November 1.
As capacity shrank, fares across all carriers surged dramatically, often five to ten times the usual rates. Round-trip prices on top routes shot past ₹80,000– ₹90,000.
A Delhi–Mumbai return ticket spiked to ₹93,000, Bengaluru touched ₹92,000, Kolkata hit ₹94,000, and Chennai climbed to ₹80,000. Under normal circumstances, round-trip economy fares on these routes rarely exceed ₹20,000–25,000, and even last-minute bookings seldom go beyond ₹30,000.
Air India says 'proactively capped airfares'
Air India on Saturday said it has already been limiting fares on domestic routes, issuing a clarification soon after the government announced temporary caps to rein in steep ticket prices across the aviation sector.
In a statement, the airline said it has been capping economy fares on all non-stop domestic flights since December 4. “Air India & Air India Express clarify that, since 4 December, economy class airfares on non-stop domestic flights have been proactively capped to prevent the usual demand-and-supply mechanism being applied by revenue management systems,” the spokesperson said.
The airline also addressed circulating screenshots of unusually high last-minute fares on routed itineraries sold through online platforms. “We are aware of screenshots of last-minute itineraries with one-stop or two-stop flights or a combination of economy and premium economy or business cabins taken from third party platforms. It is not technically possible to cap all such permutations, but we are engaging such platforms to exercise oversight,” the statement added.
(With inputs from Neha LM Traipathi)
