Indigo meltdown: Details of the govt-imposed cap on airlines amid surge in air ticket prices
The civil aviation ministry said the government has taken serious note of concerns regarding unusually high airfares
New Delhi: The civil aviation ministry (MCA) has imposed temporary fare caps on domestic flights after disruptions in the operations of a scheduled airline led to large-scale cancellations, capacity constraints, and an “unreasonable surge” in ticket prices across several sectors.
According to the order issued on Friday, airlines will not be permitted to charge passengers more than the ceiling fares specified for different stage lengths. The maximum fares notified are ₹7,500 for routes up to 500 km, ₹12,000 for 500–1,000 km, ₹15,000 for 1,000–1,500 km, and RS 18,000 for routes above 1,500 km. These limits are exclusive of UDF (user development fee), PSF (passenger service fee) and taxes, and do not apply to Business Class or RCS-UDAN flights.
The order, the government said, has come into immediate effect and has been issued with the approval of the competent authority. The Directorate General of Civil Aviation (DGCA) has been asked to monitor and regulate airfares on the listed sectors.
The ministry said the measures have been taken “in public interest” and will remain in force until fares stabilise or until further review. The caps will apply to all bookings, irrespective of whether they are made directly on an airline’s website or through travel portals.
Airlines have been directed to maintain adequate ticket availability across fare buckets and consider adding capacity on routes experiencing elevated demand. They must also avoid steep or unusual fare hikes on sectors hit by cancellations, and provide the maximum possible support to affected passengers, including alternative flight options where feasible.
The ministry said that it has invoked its regulatory powers to ensure “fair” and “reasonable” fares across all affected routes to protect passengers from any form of opportunistic pricing amid concerns regarding unusually high airfares being charged by certain airlines during the ongoing disruption after the country’s largest airline- IndiGo cancelled at least 1,600 flights over the week due to mismanagement in planning the crew roster .
“The Ministry of Civil Aviation has taken serious note of concerns regarding unusually high airfares being charged by certain airlines during the ongoing disruption. In order to protect passengers from any form of opportunistic pricing, the Ministry has invoked its regulatory powers to ensure fair and reasonable fares across all affected routes,” the ministry said.
“These caps will remain in force until the situation fully stabilises. The objective of this directive is to maintain pricing discipline in the market, prevent any exploitation of passengers in distress, and ensure that citizens who urgently need to travel — including senior citizens, students, and patients- are not subjected to financial hardship during this period,” the statement said.
The statement further said that the government would continue to closely monitor fare levels through real-time data and active coordination with airlines and online travel platforms. “Any deviation from the prescribed norms will attract immediate corrective action in the larger public interest,” it said.
Following IndiGo’s mass cancellation of flights across the country on Friday due to mismanagement in planning the crew roster as per the new Flight Duty Time Limitations (FDTL) implemented on November 1, the airfares surged sharply across all airlines -- in many cases touching five to ten times the usual rates on major sectors.
Round-trip prices on the busiest routes crossed Rs80,000– ₹90,000. A Delhi–Mumbai return ticket was listed as high as ₹93,000, while Bengaluru was showing ₹92,000, Kolkata ₹94,000, and Chennai ₹80,000. In normal circumstances, economy round-trip fares on these routes rarely exceed Rs20,000–25,000, and even last-minute bookings seldom go beyond ₹30,000.
The ministry has also directed IndiGo to clear all pending passenger refunds without delay.
“The Ministry has mandated that the refund process for all cancelled or disrupted flights must be fully completed by 8:00 PM on Sunday, 7 December 2025. Airlines have also been instructed not to levy any rescheduling charges for passengers whose travel plans were affected by cancellations. The Ministry has clarified that any delay or non-compliance in refund processing will invite immediate regulatory action,” its statement said.
The ministry also said that to ensure seamless grievance redressal, IndiGo has been instructed to set up dedicated passenger support and refund facilitation cells. “These cells have been tasked to proactively contact affected passengers and ensure that refunds and alternative travel arrangements are processed without the need for multiple follow-ups. The system of automatic refunds will remain active until operations stabilise completely,” it said.
The government also directed the airline to ensure that all baggage that was separated from passengers due to cancellations or delays is traced and delivered to the passenger’s residential or chosen address within the next 48 hours.
“Airlines have been told to maintain clear communication with passengers regarding tracking and delivery timelines, and to provide compensation where required under existing passenger rights regulations,” it stated. `
“The Ministry of Civil Aviation remains in continuous coordination with airlines, airports, security agencies, and all operational stakeholders to ensure that passenger rights are fully protected during this period of disruption. Oversight mechanisms have been reinforced to guarantee proper facilitation for senior citizens, differently-abled passengers, students, patients, and all those requiring urgent travel. The Ministry continues to closely monitor the recovery process and remains fully committed to restoring complete operational normalcy at the earliest,” the statement concluded.
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