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India Ends Domestic Airfare Caps With Warning on Unreasonable Hikes

Rising jet-fuel costs could keep fares climbing.

Overview

  • The Ministry of Civil Aviation, which withdrew the temporary ceiling effective Monday, restored market pricing and put real-time fare tracking in place with a threat to reimpose controls if prices surge without cause.
  • Early data from travel agents shows fares up about 5–10% on busy metro routes and for last‑minute bookings, while some outlet snapshots flagged far larger spikes on specific flights such as DelhiMumbai.
  • Airlines have added fuel surcharges that sit on top of the base fare, including Rs 399 on Air India domestic tickets, Rs 425–2,300 per sector at IndiGo, and up to Rs 1,300 at Akasa Air.
  • Costs are rising due to longer detours around restricted West Asia airspace, a weaker rupee that lifts dollar‑denominated leases and maintenance, and an expected ATF price revision on April 1 that officials and airline leaders say could bite next month.
  • Industry groups argued caps hurt revenue during a cost shock, but pilots’ bodies and opposition leaders, including Arvind Kejriwal, warned the rollback squeezes the middle class, with the biggest impact likely on peak routes, short‑notice travel, and tickets on carriers where fuel makes up as much as 30–45% of operating costs.