Sources indicated that the lifting of these restrictions will return pricing to a market-driven model. While removing the caps, the Ministry cautioned airlines to maintain reasonable, transparent pricing and warned of potential regulatory intervention if unjustified surges occur
Any unjustified increase in ticket prices could invite regulatory intervention, sources said. Representational Pic/File
The Ministry of Civil Aviation (MoCA) will lift temporary caps on domestic airfares from March 23, following the stabilisation of flight operations and restoration of capacity, sources told the ANI.
The move will mark a return to market-driven pricing across India’s domestic aviation sector.
The restrictions were introduced in December 2025 after widespread flight cancellations by IndiGo led to a sharp drop in capacity.
This resulted in a surge in ticket prices on major domestic routes, prompting concerns over affordability.
Sources indicated that the lifting of these restrictions will return pricing to a market-driven model. While removing the caps, the Ministry cautioned airlines to maintain reasonable, transparent pricing and warned of potential regulatory intervention if unjustified surges occur.
Return to market-based pricing
With operations now stabilised, the government has decided to withdraw the caps and allow airlines to determine fares based on demand and supply, according to the ANI.
However, airlines have been advised to maintain reasonable and transparent pricing practices.
The Ministry cautioned that any unjustified increase in ticket prices could invite regulatory intervention.
The Directorate General of Civil Aviation (DGCA) will continue to monitor fares in real time to ensure compliance.
Protecting passengers
Earlier on December 6, 2025, the Ministry of Civil Aviation took serious note of concerns regarding unusually high airfares being charged by certain airlines during the ongoing disruption. In order to protect passengers from any form of opportunistic pricing, the Ministry has invoked its regulatory powers to ensure fair and reasonable fares across all affected routes.
An official directive was issued to all airlines mandating strict adherence to the fare caps that have now been prescribed. These caps were to remain in force until the situation fully stabilises, according to an official release from the Ministry of Civil Aviation.
When the caps were introduced, the Ministry had raised concerns about unusually high fares being charged during the disruption.
Airlines were directed to strictly follow fare limits to prevent opportunistic pricing and protect passengers, especially those travelling for urgent needs such as medical care, education, or family emergencies.
The aim was to ensure affordability and prevent financial strain during a period of reduced flight availability.
(with ANI inputs)
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