Domestic airfare cap removed in India as Congress and AAP warn of higher ticket prices

The Ministry of Civil Aviation has decided to withdraw temporary caps on domestic airfares from March 23, 2026. The limits were introduced after IndiGo disruptions in December last year. The decision has drawn criticism from Congress and AAP convener Arvind Kejriwal. Both parties warned that fares could rise sharply for many travellers.

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Congress attacked the move on X and claimed passengers may face unchecked pricing again. "Bad news for air travellers. The Modi government has removed the maximum limit of 18,000 rupees on domestic airfares -- its given a free pass to looting.Youll remember -- in the Indigo crisis, they charged 50 to 80 thousand rupees per ticket. Now, airline companies will once again be able to extract arbitrary fares from you in the name of rising demand, the Congress posted on X on Sunday.\"

Domestic airfares cap removal draws opposition reaction

Kejriwal said the Centre should regulate fares because air travel now meets essential needs. \"Airfares are increasingly going out of reach for the middle class. The Modi government is removing the cap on airfares, which might trigger high inflation in ticket prices.The government should instead work to regulate airfares more efficiently. Air travel is no longer a luxury, its a necessity for the middle class, he added.\"

The former Delhi CM said the change could make flying unaffordable for middle class families. Kejriwal also said the decision may lead to a steep jump in ticket prices. Kejriwal linked the concern to the start date of March 23. Kejriwal described the removal as raising serious concerns about travel costs.

Domestic airfares cap removal order sets pricing discipline rules

The ministry order said airlines must follow pricing discipline and behave responsibly. It said fares should be reasonable, transparent, and aligned with market conditions. It also said passenger interests should not be harmed by pricing choices. The ministry warned it would view excessive fare surges seriously, especially during peak demand or disruptions.

The order said the ministry is tracking airfare trends in real time. It also noted the caps were introduced on December 6. The step aimed to stop an abnormal spike in fares after large-scale IndiGo flight disruptions. The ministry said conditions have stabilised since then, with capacity restored and operations normalised.

Domestic airfares cap removal comes amid West Asia route disruption

The withdrawal comes as airlines report major disruption on some international routes due to the West Asia conflict. The domestic fare change applies even as carriers manage these operational pressures. The government has not announced a new cap to replace the withdrawn limits. Instead, the order relies on monitoring and warnings against unjustified price jumps.

The ministry order said the earlier ceiling would be removed after a review of the sector. It cited stabilised operations across airlines as the reason for the change. The withdrawal takes effect on March 23, 2026, as stated in the order. Political parties have continued to press for stronger fare controls after the announcement.

With inputs from PTI