The Civil Aviation Ministry has decided to withdraw the temporary cap imposed on domestic air fares from March 23, 2026. Last year, after the crisis of IndiGo Airlines, the government had imposed this restriction to control the rising prices of tickets. However, airline companies have been given a clear warning to decide the fares responsibly and keep in mind the interests of the passengers.
Ministry’s statement: Tickets have to be kept fair and transparent
Issuing the order, the Civil Aviation Ministry said that the fare cap was imposed on December 6, 2025 because there was an abnormal increase in ticket prices due to large-scale cancellation of IndiGo flights. At that time the government had to intervene to protect the interests of passengers and keep tickets affordable.
Now the ministry has said that the fare cap will be removed from March 23, 2026. But airlines have been instructed that ticket prices should be fair, transparent and in line with market conditions, so that there is no unnecessary burden on passengers. The government also made it clear that if excessive or unreasonable increase in fares is found in circumstances like peak season, emergency or flight disruption, it will be taken seriously. The government will continue to monitor fare trends in real time.
Cap may be implemented again if necessary in future
The Civil Aviation Ministry also said that if the need arises in future, fare control or other regulatory steps can be taken again in public interest. This order has been issued with the approval of the competent authority and DGCA has been instructed to monitor the fares in the entire sector.
Fares fixed during Indigo crisis
Last year, when thousands of flights were canceled due to shortage of pilots in Indigo Airlines, ticket prices suddenly increased. To protect passengers from this robbery, the Government of India had fixed the upper limit of air fares.
The rules laid down earlier were as follows:
Flight up to 500 km: Ticket price not more than Rs 7,500.
Delhi to Mumbai (1,000-1,500 km): Maximum fare Rs 15,000.
Flights longer than 1,500 km: Maximum fare Rs 18,000.
In simple words, airlines were not allowed to charge even a single rupee more than these fixed prices.
Impact of Middle East war and ATF prices
Let us tell you that amid the Iran war, global oil prices have increased and this has affected air fares. Civil Aviation Minister Ram Mohan Naidu said that the government is trying to ensure that its impact is minimal. He said that its impact on the aviation sector can be seen in the cost of Air Turbine Fuel (ATF), the prices of which will be revised from April 1.