The airline said its revenue management systems had been instructed to prevent the usual demand-supply pricing mechanism.
India
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News1806/12/2025

Govt Cracks Down on Fare Spikes; Air India Capped Fares Since Dec 4

  • Air India capped economy-class fares on non-stop domestic flights since December 4 due to IndiGo's crisis.
  • The airline clarified that high fares circulating online are for complex, multi-stop itineraries on third-party platforms.
  • The Ministry of Civil Aviation mandated fare caps and barred rescheduling fees to curb 'opportunistic pricing' by airlines.
  • The government will monitor fare levels in real-time, warning of corrective action for deviations from prescribed norms.
  • IndiGo's five-day operational meltdown caused hundreds of flight cancellations and a significant surge in other airlines' fares.

Why It Matters: Government action protects flyers from excessive airfare hikes during crises.

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