The Ministry of Civil Aviation (MoCA) lifted interim rate limitations on domestic airfares that had been in place since December, citing that the circumstances that sparked the controls had stabilized — but warned airlines that excessive pricing would result in the re-imposition of controls.
According to a MoCA order, the caps will be withdrawn from March 23. The Directorate General of Civil Aviation has been tasked with monitoring airfares across the sector in real time. This comes two days after the three airlines—Air India, IndiGo, and SpiceJet—met with the civil aviation ministry on March 18.
According to reports, the airlines have identified major operational challenges as a result of the ongoing West Asia crisis, including the removal of fare caps. According to sources, a letter asking the same was also addressed to the government.
The limitations were implemented on December 6 in response to IndiGo’s large-scale flight cancellations, which caused considerable inconvenience, with the government citing the necessity to protect customers during a period of constrained capacity. The maximum one-way ticket has been set at ₹18,000.
The ministry emphasized in its most recent directive that the interim fare cap was implemented to prevent an abnormal increase in ticket costs caused by large-scale flight interruptions, as well as to protect customer interests and maintain affordability during a period of limited 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across the sector, upon review, it has been decided that the fare cap imposed vide the aforesaid letter shall stand withdrawn with effect from 23rd March, 2026,” the ruling said.
The decree further said that any excessive or unreasonable increase in fares, if observed—especially during times of peak demand, disruptions, or exigencies—”will be viewed seriously.”
“The Ministry will continue to monitor airfare patterns in real time. The Ministry reserves the right to take relevant regulatory or administrative actions, such as re-introducing fare limits or other interventions, if necessary in the public interest,” it noted.
