Overview
- The Civil Aviation Ministry issued a March 20 order withdrawing distance‑based fare ceilings from March 23, returning ticket prices to market-driven levels.
- Airlines are instructed to keep fares reasonable and transparent, with the DGCA monitoring prices in real time and the government reserving the option to reimpose controls if spikes occur.
- Carriers have begun levying fuel surcharges as aviation turbine fuel costs rise, the rupee weakens, and longer routings increase expenses, raising expectations of higher fares.
- The Federation of Indian Airlines pressed for the rollback, citing financial strain, and is also challenging a directive to make 60% of seats free for selection, warning it would erode ancillary revenue and lift base fares.
- The caps—roughly ₹7,500 to ₹18,000 by distance—were introduced on December 6, 2025, after IndiGo’s mass cancellations, with the ministry now saying operations have stabilised sector‑wide.