New Delhi: The Centre has withdrawn the temporary cap on domestic airfares, allowing airlines to determine ticket prices based on market conditions from Monday. The decision comes after months of fare regulation that was introduced following flight disruptions and rising ticket prices.
The fare ceiling had been imposed in December 2025 after widespread disruptions in domestic flight operations led to reduced seat availability and sharp increases in ticket costs. The measure was intended as a temporary step to protect passengers from sudden fare spikes.
With the restriction now removed, airlines will be able to fix ticket prices according to demand, route conditions and operational costs. Earlier, one-way economy class fares had an upper limit based on distance, with the cap going up to around Rs 18,000 on certain sectors.
The Civil Aviation Ministry, while removing the cap, said airlines are expected to maintain reasonable pricing practices. Officials indicated that any excessive fare increases during periods of disruption or peak demand could invite regulatory attention, and intervention could be considered again if required in public interest.
Officials said the decision was taken as part of efforts to gradually restore normal pricing mechanisms in the aviation sector after the temporary disruption period.
The move also comes at a time when airlines are facing increasing operating expenses, particularly due to higher aviation turbine fuel prices and global factors affecting the aviation sector. Industry sources have indicated that rising input costs have been putting pressure on airline finances.
Airline operators had been seeking removal of fare restrictions, stating that prolonged price controls were affecting revenue recovery efforts at a time when the sector is still dealing with cost pressures and operational adjustments.
According to industry representatives, allowing market-based pricing is expected to help airlines manage operational sustainability while maintaining competitive services.
Officials said the government would continue monitoring fare trends to ensure passenger interests are protected while allowing the sector to function under normal commercial conditions.
