Major Relief for Airlines Amidst Crisis… Government Lifts Price Cap on Domestic Flight Tickets

New Delhi. Global attention remains fixed on the escalating energy crisis stemming from the ongoing conflict in West Asia. Amidst this situation, the government has extended a measure of relief to help airlines navigate this crisis. The Ministry of Aviation has lifted the temporary price cap that was imposed on domestic flight tickets in December. The Ministry stated that this measure had been implemented in December due to a deteriorating situation; now that conditions have normalized—and in light of the ongoing crisis in West Asia—the cap is being removed. However, the government has issued a warning to airlines, cautioning that if this relaxation is misused, the price cap will be reimposed.

A statement issued by the Ministry announced that the price cap will be officially lifted effective March 23. Concurrently, the DGCA has issued a directive stating that the fares charged by all airlines will be closely monitored. The order stated, “The current situation has now stabilized, capacity has been restored, and operations across the entire sector have returned to normalcy; therefore, following a review, the decision has been taken to remove the fare limits effective March 23, 2026.” Additionally, the order stated that if airlines were found to have unjustifiably hiked ticket prices during a period of rising passenger volume, the matter would be viewed with grave seriousness.

Notably, this decision by the government comes at a time when airlines are facing significant financial losses due to the escalating crisis in West Asia. On March 18, officials from Air India, IndiGo, and SpiceJet visited the Ministry to engage in discussions with the government regarding this issue. During the meeting, they requested the removal of the fare caps. According to reports, these airlines had also submitted a written representation to the government in this regard.

It is worth noting that the government had imposed these price caps on domestic airfares on December 6. During that period, a regulation implemented by the government led to the cancellation of numerous IndiGo flights, resulting in widespread disruption. At the time, the government had taken this measure to safeguard the interests of passengers during a phase of limited operational capacity. The maximum permissible one-way fare was fixed at ₹18,000.