India Lifts Domestic Airfare Caps Amid West Asia Crisis

The government has withdrawn the temporary cap on domestic airfares imposed in the aftermath of the December 2025 flight disruption crisis involving IndiGo.| India News

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The Indian government has removed temporary airfare caps on domestic flights, citing a stabilised situation after the West Asia crisis. The caps, introduced in December, will be withdrawn from March 23, but airlines have been warned against excessive pricing.

The Ministry of Civil Aviation (MoCA) made the decision after a meeting with airlines, who flagged operational issues due to the crisis. The caps had been set at ₹18,000 for one-way fares to protect passengers during a period of constrained capacity.

However, with the situation stabilising and capacity restored, the ministry has decided to withdraw the fare cap. It has warned airlines that any instance of excessive or unjustified surge in fares will be viewed seriously and may lead to re-introduction of fare controls.

The Directorate General of Civil Aviation will continue to monitor airfares in real-time to ensure passenger affordability and prevent unfair pricing.