Air India Introduces New Fares After Price Cap Order
Air India has started rolling out revised ticket fares after the government issued a directive capping domestic economy prices. The decision was taken after large-scale disruptions in air travel, triggered by IndiGo’s pilot shortage and mass cancellations, led to unusually high fares across the market.
Government Caps Economy Ticket Prices
Under the new order, maximum economy fares have been set at ₹7,500 for flights up to 500 km, ₹12,000 for 500–1,000 km, ₹15,000 for 1,000–1,500 km and ₹18,000 for routes above 1,500 km. These caps apply to scheduled commercial flights, excluding categories such as business class and subsidised UDAN routes.
Air India said fare adjustments are being rolled out in phases. Air India Express has already completed the update, while the main airline is completing system changes. Passengers who booked tickets above the capped price during the transition will receive refunds for the difference.
Waiver On Change And Cancellation Fees
To support travellers affected by the ongoing disruption, Air India has announced a waiver of change and cancellation fees on selected domestic bookings. This applies to flights scheduled within the current disruption period, allowing customers to change plans without additional charges.
The airline will also increase capacity on key routes to accommodate passengers stranded by cancellations in the wider network.
Background To Pricing Intervention
The fare cap order was issued after IndiGo’s large number of cancellations caused demand to exceed supply, leading to sudden price jumps. As the largest carrier in India, IndiGo’s operational challenges had a ripple effect on the entire sector.
The government said the fare limits are temporary and meant to ensure reasonable pricing until schedules stabilise.
