Special Correspondent: Arun Sharma

New Delhi: Air travel in India is set to become more expensive as the Central Government has removed the upper fare cap on domestic flights. The decision, effective from Monday, allows airlines to set ticket prices based on operational costs, directly impacting passengers’ expenses.


Fare Cap Removed: Airlines now free to determine ticket prices.
Effective Date: March 23, 2026.
Earlier Cap: ₹18,000 (excluding taxes and charges).
Reason: Rising fuel costs and currency pressure.
Government Warning: Strict monitoring to prevent unfair pricing.


Cap Introduced During ‘IndiGo Crisis’
The fare cap was imposed on December 6, 2025, during the ‘IndiGo crisis’ to control sudden spikes in ticket prices. With flight operations now normalized, the Ministry of Civil Aviation has officially withdrawn the restriction.


Airlines Cite Rising Operational Costs
Airlines argue that escalating costs—driven by geopolitical tensions in West Asia and a weakening rupee—have significantly increased their financial burden. Payments in US dollars and a surge in Aviation Turbine Fuel (ATF) prices have made operations more expensive.


Air India CEO Campbell Wilson, in an internal communication, stated:
“Costs are rising continuously. We have introduced fuel surcharges on new tickets to reduce losses, but not all passengers are willing to pay higher fares.”


Government to Keep a Close Watch
Despite lifting the cap, the government has urged airlines to maintain discipline and responsibility. Authorities have warned that if unreasonable fare hikes are observed during peak seasons or emergencies, the fare cap may be reimposed in the public interest.


What It Means for Passengers
Experts believe airfare volatility will increase, especially during festivals and holiday seasons. Travelers are advised to plan and book tickets in advance to avoid higher costs.