New Delhi: Domestic airfares are expected to increase after the Civil Aviation Ministry decided to remove the temporary fare cap that had been in place since early December, with the change coming into effect from Monday, March 23.
The move is intended to help airlines recover losses incurred due to longer international flight routes necessitated by the ongoing conflict involving the US, Israel, and Iran. Carriers had already signalled fare hikes in response to rising Aviation Turbine Fuel costs linked to the crisis.
In an order dated March 20, the ministry noted that conditions in the sector had stabilised, citing the restoration of capacity and a return to normal operations. At the same time, it directed airlines to avoid imposing excessive or unjustified fare increases during peak periods or disruptions, TNIE reported.
The ministry also indicated that it could reintroduce fare caps or take other measures in the public interest if required.
The cap had originally been imposed following the IndiGo crisis between December 1 and 9, which led to widespread cancellations and complaints of fare exploitation by airlines and travel platforms. On December 6, 2025, the ministry stepped in with regulatory measures, warning of strict action against violations and stating that the caps would remain until the situation improved.
Under the earlier framework, maximum fares were set at Rs 7,500 for flights up to 500 km, Rs 12,000 for 500–1,000 km, Rs 15,000 for 1,000–1,500 km, and Rs 18,000 for distances beyond 1,500 km.
The latest decision also comes amid concerns raised by the Federation of Indian Airlines, which represents three major carriers. The group has urged the ministry to reconsider a recent directive requiring airlines to offer 60% of seats without additional charges for selection, warning that the rule could push ticket prices higher.