The Centre has lifted temporary caps on domestic airfares effective March 23, freeing airlines to adjust prices as fuel costs soar from the US-Israel-Iran war.
Introduced December 6 after IndiGo’s mass cancellations, the limits kept economy tickets at ₹7,500-₹18,000 based on distance, protecting passengers during supply crunches.
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Now withdrawn, the move follows airline lobbying, FIA warned of route cuts and losses from skyrocketing ATF prices and blocked international paths.
“The situation that prompted controls has stabilised,” says the Ministry of Civil Aviation order. But a stern warning: Airlines must keep fares “reasonable, transparent,” or face reimposition.
Impacts for flyers: Hikes expected, especially on popular routes. IndiGo, Air India, SpiceJet pushed for this amid 20-30% fuel jumps.
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