Govt scraps airfare caps from March 23, warns against price surge

In a significant move for India’s aviation sector, the government has decided to remove the temporary caps on domestic airfares , effective March 23 , marking a return to market-driven pricing after months of regulation.

The fare limits were originally imposed on December 6, 2025 , following widespread disruptions caused by operational issues at IndiGo, which had led to an abnormal surge in ticket prices across several routes. The caps were aimed at protecting passengers from sudden fare spikes during a period of uncertainty.

Now, with the situation largely stabilised and flight operations returning to normal , the Ministry of Civil Aviation has concluded that such restrictions are no longer necessary. The government noted that capacity has been restored and the sector is functioning smoothly again.

However, the removal comes at a time when airlines are navigating fresh challenges, particularly due to disruptions in international routes triggered by the ongoing tensions in West Asia. Despite this, authorities believe the domestic market is stable enough to function without price controls.

At the same time, the government has issued a clear warning to airlines. It has stressed the need for pricing discipline , urging carriers to ensure that fares remain reasonable, transparent, and aligned with market conditions . Any instance of unjustified or excessive surge in ticket prices , especially during peak demand or emergencies, will be closely monitored and dealt with seriously.

Officials have also confirmed that airfare trends will continue to be tracked in real time to safeguard passenger interests.

The decision signals a shift back to competitive pricing , offering airlines more flexibility while placing responsibility on them to maintain fairness, a balance that will directly impact millions of domestic flyers in the coming months.