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Amid West Asia crisis, Indian govt removes airfare caps imposed after December cancellation mess
The government has withdrawn the temporary cap on domestic airfares imposed in the aftermath of the December 2025 flight disruption crisis involving IndiGo.
The Ministry of Civil Aviation (MoCA) on Saturday withdrew temporary fare caps on domestic airfares that had been in place since December, saying the situation that prompted the controls had stabilised — but warned airlines that excessive pricing would invite re-imposition of controls.
The caps will now stand withdrawn with effect from March 23, according to a MoCA order. The Directorate General of Civil Aviation has been asked to monitor airfares across the sector on a real-time basis.
This comes two days after a meeting between the three airlines — Air India, IndiGo and SpiceJet — and the civil aviation ministry, held on March 18. The airlines are learnt to have flagged severe operational issues due to the ongoing West Asia crisis, including the removal of fare caps.
According to reports, a letter requesting the same was also written to the government.
The caps had been introduced on December 6 following large-scale flight cancellations by IndiGo that caused widespread disruption, with the government citing the need to protect passengers during a period of constrained capacity. The maximum permissible one-way fare had been set at ₹18,000.
The ministry, in its latest order, reiterated that the temporary fare cap had been introduced to contain an abnormal surge in ticket prices arising out of large-scale flight disruptions and to safeguard passenger interests and ensure affordability during a period of constrained capacity.
“Whereas, 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across the sector, upon review, it has been decided that the fare cap imposed vide the aforesaid letter shall stand withdrawn with effect from 23rd March, 2026,” the order read.
The order added that any instance of excessive or unjustified surge in fares, if observed—particularly during periods of peak demand, disruptions, or exigencies—“will be viewed seriously.”
“The Ministry will continue to closely monitor airfare trends on a real-time basis. The Ministry reserves the right to take appropriate regulatory or administrative measures, including re-introduction of fare controls or other interventions, if required in public interest,” it stated.
