Air fares likely to surge as govt withdraws cap
PATNA, March 23 -- The ministry of civil aviation (MoCA) has withdrawn its temporary cap on domestic airfares, introduced during last December's aviation disruption crisis, thus paving the way for a likely increase in ticket prices, particularly ahead of the peak summer travel and festival seasons.
The withdrawal, notified through an order dated March 20, will come into effect from March 23. Airlines have been directed to ensure that fares remain reasonable, transparent and aligned with market conditions, while safeguarding passenger interests.
"The effect of withdrawal on fare cap will be visible during the peak travel season of May and June, when education institutions are closed for summer vacation. Currently, post-Eid, passenger flow is normal. Today's Patna-Delhi economy class air ticket cost between Rs.6,300 and Rs.10,000," said Kumud Ranjan of Mamta Travels, a travel agent in Patna.
In its order, the ministry said the aviation sector had stabilised, with flight capacity restored and operations normalised, rendering the fare caps unnecessary. However, it cautioned airlines against any unjustified price spikes.
The move offers relief to airlines grappling with rising operational costs, while retaining regulatory oversight to ensure fair pricing. For passengers, however, it is expected to translate into higher fares.
The now-withdrawn order (No. 01/2025), issued on December 6, 2025, had imposed emergency fare ceilings following widespread flight disruptions caused by an operational crisis that led to cancellations and a sharp supply crunch. The caps aimed to curb abnormal surges in ticket prices and prevent profiteering while ensuring affordability during a period of constrained capacity.
Under the December order, distance-based fare ceilings were fixed at around Rs.7,500 for routes up to 500 km; Rs.12,000 for sectors between 500 and 1,000 km; Rs.15,000 for sectors between 1,000 and 1,500 km; and up to Rs.18,000 for longer routes above 1,500 km, excluding taxes and fees. These limits applied to one-way economy-class tickets and were conceived as a temporary stabilisation measure.
"Despite operational normalisation, domestic airfares have remained elevated due to multiple external pressures, particularly ongoing conflicts in West Asia. A surge in aviation turbine fuel prices has significantly increased airline costs, while airspace restrictions and rerouting of international flights have led to longer flight durations and higher fuel consumption. Airlines have also raised fuel surcharges by up to Rs.500 on certain domestic routes, with some carriers like IndiGo now reflecting these charges separately in ticket pricing," said Ranjan.
Raman Jha of Super Tours and Travels, said the aviation industry was going through a critical phase as nearly 40% travel was down due to West Asia conflicts, affecting domestic travel as well....
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