The Ministry of Civil Aviation will lift temporary domestic airfare caps from March 23, returning pricing to a market-driven model. The restrictions were imposed in December 2025 after massive flight cancellations led to fare surges.
Airfare Caps Lifted, Market-Driven Pricing Returns
The Ministry of Civil Aviation (MoCA) will lift temporary domestic airfare caps effective March 23, following the stabilisation of flight operations and capacity restoration, sources said. These restrictions were originally imposed in December 2025, after widespread, massive flight cancellations by IndiGo led to a severe capacity shortage, causing airfares to skyrocket across major domestic routes.
Sources indicated that the lifting of these restrictions will return pricing to a market-driven model. While removing the caps, the Ministry cautioned airlines to maintain reasonable, transparent pricing and warned of potential regulatory intervention if unjustified surges occur. The Directorate General of Civil Aviation (DGCA) will continue to monitor fares in real-time.
Background: Why the Fare Caps Were Imposed
Earlier on 6 December 2025, the Ministry of Civil Aviation took 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.
An official directive was issued to all airlines mandating strict adherence to the fare caps that have now been prescribed. These caps were to remain in force until the situation fully stabilises, according to an official release from the Ministry of Civil Aviation.
The objective of this directive was 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 Ministry promised to continue to closely monitor fare levels through real-time data and active coordination with airlines and online travel platforms. (ANI)
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