The government has removed the temporary caps on domestic airfares that were introduced after the IndiGo flight disruptions in December last year. The decision will take effect from March 23, according to an order issued by the civil aviation ministry.
The caps were put in place on December 6 to control a sudden rise in ticket prices after large-scale flight disruptions. With operations now stabilised, the ministry said the situation has improved.
The removal comes at a time when airlines are dealing with operational disruptions on international routes due to the West Asia conflict. Even so, the ministry has asked airlines to remain careful with pricing.
In its order, the ministry said airlines must follow responsible pricing. It noted, "Airlines shall ensure that fares remain reasonable, transparent and commensurate with market conditions, and that passenger interests are not adversely impacted," it said.
The ministry has also warned that any sharp or unjustified increase in fares, especially during peak demand or disruptions, will be taken seriously. It is monitoring fare trends in real time.
The order stated that conditions in the aviation sector have stabilised, with capacity restored and operations normalised.
It added, "The prevailing situation has since stabilised, with restoration of capacity and normalisation of operations across the sector. Upon review, it has been decided that the fare cap imposed vide the aforesaid letter shall stand withdrawn with effect from 23rd March, 2026," the order said.