Government Removes Domestic Airfare Caps
The Centre has removed temporary fare caps on domestic air travel, allowing airlines to price tickets freely again from March 23 as operating costs continue to rise sharply. The move comes after months of restrictions that were introduced during the aviation disruption linked to the IndiGo crisis, but airlines had argued that soaring fuel and route costs were making the caps difficult to sustain.
Government Removes Domestic Airfare Caps
The Civil Aviation Ministry has withdrawn the temporary upper fare limits that had been imposed on domestic routes in December 2025. The caps had been brought in to prevent excessive pricing after widespread flight disruptions, but the government has now said operations have largely stabilised, making it possible to roll back the measure.
Airlines Face Rising Operating Costs
Airlines have been under pressure from higher aviation turbine fuel prices and rising operational costs linked to the West Asia conflict. Longer routings on some international sectors and broader cost inflation have added to the strain. Carriers had been pushing for the removal of fare caps, arguing that the restrictions were hurting revenue at a time when expenses were climbing sharply.
Domestic Flight Tickets May Become Costlier
With the cap removed, airlines are now expected to increase fares on many domestic routes, especially where demand is strong or supply remains tight. However, the government has also said airlines must keep fares transparent and reasonable, signalling that pricing will still be watched closely. The decision is likely to bring relief to carriers but may increase the burden on passengers already dealing with higher travel costs.
The rollback marks a major policy shift in India’s aviation market, restoring pricing flexibility for airlines while raising the possibility of steeper ticket prices in the coming weeks.
