No cap on domestic airfare from March 23: How it will affect ticket prices

Airfares are all set to increase further, as the Civil Aviation Ministry has decided to remove temporary caps on domestic airfares from tomorrow. The airfare caps were imposed following the IndiGo flight disruptions on December 6, last year. That said, the ministry said that airlines should exercise pricing discipline and should ensure that fares remain reasonable, commensurate with market conditions and transparent. Any instance of an unjustified surge will be viewed seriously. 

The order said, 'The prevailing situation has since stabilised, with restoration of capacity and normalisation of operations across the sector. Upon review, it has been decided that the fare cap imposed with the aforesaid letter shall stand withdrawn with effect from 23rd March, 2026.' 

How will it affect ticket prices
Rising global oil prices and geopolitical tensions are expected to put pressure on ticket fares. According to Civil Aviation Minister Ram Mohan Naidu, the rise in oil prices is already affecting air travel costs, and various ministries are coordinating to mitigate the impact. The price of aviation turbine fuel (ATF) will be revised from April 1. Since ATF prices are fixed on the first day of every month, the effects of the ongoing war may become more evident from April 1, he noted.

The conflict in West Asia could affect the financial stability and operations of airlines as well. The government is in continuous dialogue with airlines on these issues, and efforts are underway to prevent an excessive rise in ticket prices and ease the burden on passengers. The Civil Aviation, External Affairs, and Petroleum ministries are jointly addressing the situation. The government has given top priority to ensuring the safety of flight operations to West Asian regions, the Union Minister added.

Around 40 per cent of airline companies' operating costs go towards fuel expenses. With global fuel prices rising, airlines such as Air India and IndiGo have already begun imposing fuel surcharges on both domestic and international routes.
(With PTI inputs)