Domestic airfares capped to prevent demand-supply price spike, says Air India

06 December,2025 10:52 PM IST |  Mumbai  |  mid-day online correspondent

The move was taken to prevent fare hikes that usually occur through revenue management systems when demand increases suddenly, an official statement said

Air India and Air India Express have clarified that they have capped economy class fares. Representational Pic/File/PTI


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Air India and Air India Express have clarified that they have capped economy class fares on all non-stop domestic flights since December 4, 2025.

The move was taken to prevent fare hikes that usually occur through revenue management systems when demand increases suddenly, an official statement said.

The airlines said they were aware of screenshots circulating online that showed very high last-minute fares for journeys involving one-stop or two-stop routes, or combinations of economy, premium economy and business class. They explained that it is not technically possible to cap every such route or mixed-class itinerary, especially those displayed on third-party booking platforms. However, the airlines confirmed they are engaging with these platforms to ensure better monitoring and oversight.

A spokesperson said that both Air India and Air India Express are working to add more capacity so that the travellers and their baggage can reach their destinations as quickly as possible.

"Air India & Air India Express clarify that, since 4 December, economy class airfares on non-stop domestic flights have been proactively capped to prevent the usual demand-and-supply mechanism being applied by revenue management systems. We are aware of screenshots of last-minute itineraries with one-stop or two-stop flights or a combination of economy and premium economy or business cabins taken from third party platforms. It is not technically possible to cap all such permutations, but we are engaging such platforms to exercise oversight. Air India and Air India Express are seeking to add capacity to help travellers and their baggage reach their destinations as quickly as possible," an Air India spokesperson said.

The airlines also announced a series of measures to support passengers affected by the widespread travel disruptions across the country.

The airlines said the steps are aimed at helping stranded travellers reach their destinations as smoothly as possible.

To offer passengers more flexibility, the airlines have introduced a one-time waiver of change or cancellation fees. This applies to customers who booked their domestic Air India or Air India Express tickets on or before December 4 for travel until December 15, 2025.

They may reschedule their travel without paying rescheduling fees (fare difference may apply), or cancel their tickets and receive a full refund with no cancellation charges, it said.

The waiver is valid for changes or cancellations made until 8 December 2025. Passengers may contact the 24x7 call centres or their travel agents. Air India Express customers can also use its chatbot Tia via WhatsApp, the website, mobile app, and Facebook Messenger.

"Both airlines have deployed more staff to manage high call volumes and reduce waiting times. Air India: +91 11 6932 9333 and Air India Express: +91 124 443 5600 / +91 124 693 5600," an official statement said.

The airlines also said they are using every available seat to help stranded travellers. Where possible, eligible Economy passengers may be upgraded at no extra cost. Additional flights are also being operated on key routes to clear backlogs and ensure passengers - and their baggage - reach their destinations quickly.

It said that Air India and Air India Express confirmed that students, senior citizens, armed forces personnel and their dependents will continue to receive special discounted fares. These concessions may allow eligible passengers to book fares even lower than the capped economy rates.

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