Centre removes caps on airfares after three months

The Center has withdrawn IndiGo’s flight ticket caps, which were introduced in December to prevent a rise in ticket prices following widespread flight cancellations.

In its order dated March 21, the Ministry of Civil Aviation said: “With the re-establishment of capacity and normalization of operations throughout the sector, the current situation has stabilized. After the review, it was decided to withdraw the wage cap applied in accordance with the said letter, effective from March 23, 2026.”

The decision comes at a time when airlines have been hit hard by conflicts in West Asia, leading to a rise in aviation turbine fuel (ATF) prices, flight cancellations and re-routings that consume more fuel and are more costly.

However, the Ministry said that airlines must ensure pricing discipline. “Airlines will ensure that fares remain reasonable, transparent and commensurate with market conditions and that passenger interests are not adversely affected.”

It also warned of regulatory action, including the reintroduction of wage caps, in the event of an unfair increase in wages.