Government Ends Airfare Caps from March 23, Airlines Regain Pricing Freedom

• The Ministry of Civil Aviation has withdrawn temporary caps on domestic airfares, effective March 23, returning to market-driven pricing.
• Fare caps were imposed in December 2025 due to IndiGo disruptions and flight cancellations, which caused a surge in ticket prices.
• The caps set upper limits on economy-class fares based on distance, ranging from ₹7,500 to ₹18,000, excluding taxes.
• The decision aims to provide relief to airlines facing rising operating costs, including elevated aviation turbine fuel (ATF) prices and longer international routes.
• The Directorate General of Civil Aviation (DGCA) will continue to monitor fares to prevent excessive surge pricing, retaining the option to intervene if necessary.