Domestic airfares are set to rise from next week as the government lifts the cap on ticket prices that was in place during last year’s aviation disruptions.
This change allows airlines to pass on higher operating costs to passengers while keeping fares market-driven.
Fare Cap Lifted: What It Means for Passengers
The Ministry of Civil Aviation has decided to remove the ₹18,000 limit on domestic airfares (excluding taxes, security charges, and user fees) starting Monday, March 23.
This cap was introduced on December 6, 2025, after widespread flight disruptions by IndiGo.
At the time, fare ceilings were applied on different routes to protect passengers from excessive pricing.
Now that flight operations have stabilised, the ministry says fare regulation is no longer needed.
Airlines will be allowed to set ticket prices based on market conditions, but with some safeguards to keep fares fair and transparent.
Airlines Face Rising Costs
The move comes after major carriers, including Air India and SpiceJet, warned that prolonged fare caps were putting financial stress on airlines.
They highlighted a sharp rise in aviation turbine fuel prices, partly due to geopolitical tensions with Iran, which is increasing operational costs.
Airlines also raised concerns about rules requiring 60% of seats to be offered without extra charges for seat selection, arguing it could raise base fares indirectly.
Government Oversight Continues
Even though the fare cap is lifted, the government has instructed airlines not to exploit peak demand periods or emergencies to charge unjustified high fares.
Officials have made it clear that fare regulation can be reintroduced if needed in the public interest.
This decision marks a shift back to market-driven pricing, but passengers can expect careful monitoring to ensure fair pricing across the domestic aviation sector.
Passengers should prepare for slightly higher ticket prices, especially on popular routes, while airlines get relief from rising operational costs.
