New Delhi: Air travel within India is likely to become costlier as the government has decided to lift the temporary cap on domestic ticket prices, allowing airlines to determine fares based on demand and operational costs from Monday.
The decision by the Ministry of Civil Aviation marks a shift back to market-driven pricing after months of restrictions that were introduced to curb sudden fare spikes. The cap had been imposed in December 2025 following widespread flight disruptions, including operational issues faced by IndiGo, which led to a surge in ticket prices.
Under the earlier system, airlines were restricted by an upper fare limit—roughly ₹18,000 for one-way economy tickets depending on distance. With the cap now removed, carriers can freely adjust prices based on factors such as demand, fuel costs and availability.
However, the government has cautioned airlines against unreasonable fare hikes. In its directive, the ministry said it would closely monitor pricing trends and could step in again if fares rise excessively during peak travel periods or unforeseen disruptions.
The move comes at a time when airlines are facing mounting financial pressure due to rising aviation turbine fuel (ATF) prices and global uncertainties affecting operations. Industry stakeholders had been urging the government to remove fare limits, arguing that continued restrictions were impacting revenue and sustainability.
Officials said the latest step is aimed at restoring normal market conditions in the aviation sector, which has been gradually stabilising after recent volatility. While the change is expected to give airlines greater flexibility, passengers may have to brace for fluctuating and potentially higher ticket prices, especially during high-demand seasons.
