The Ministry of Civil Aviation has withdrawn temporary caps on domestic airfares effective March 23, 2026. The measure ends restrictions imposed after IndiGo's crisis in December 2025. Airlines have been directed to ensure transparent and reasonable pricing.
The Ministry of Civil Aviation issued an order on March 21, 2026, withdrawing temporary fare caps on domestic airfares effective March 23, 2026. The caps were imposed on December 6, 2025, following IndiGo's widespread flight cancellations due to pilot shortages, which caused abnormal ticket price surges. The ministry stated that the situation has now stabilised with restored capacity. Prior caps limited fares to a maximum of ₹7,500 for flights up to 500 km, ₹15,000 for 1,000-1,500 km, and ₹18,000 for over 1,500 km. The Indian Express reported bands as ₹7,500 up to 500 km, ₹12,000 for 500-1,000 km. The ministry directed, “Airlines shall ensure that fares remain reasonable, transparent and commensurate with market conditions, and that passenger interests are not adversely impacted.” Airlines face pressures from rising ATF prices due to West Asia conflict, rupee depreciation, and operational disruptions. The Federation of Indian Airlines urged removal of caps. DGCA has been tasked with real-time monitoring, with warnings of reimposition during peak demand or crises. The Hindu quoted the order: “The prevailing situation has since stabilised... withdrawn with effect from 23rd March, 2026.”
