Domestic airfares are starting to climb after the government scrapped price caps, even as it warned airlines against excessive increases and asked them to maintain “reasonable and transparent” pricing.
The Ministry of Civil Aviation has withdrawn distance-based fare ceilings with effect from March 23, citing stabilisation in operations. The caps were introduced in December 2025 following disruptions triggered by IndiGo flight cancellations.
Early trends suggest ticket prices are already moving higher, especially on high-demand metro routes and last-minute bookings:
Airfares have risen by 5–10 percent for late March and early April travel
Routes such as Delhi–Jaipur, Delhi–Bhopal and Delhi–Jammu have seen increases of up to 10 percent
Mumbai–Goa, Mumbai–Ahmedabad and Mumbai–Chennai sectors have also recorded notable hikes
Short-notice bookings are becoming more expensive. Tickets booked 36 hours before departure on busy routes like Delhi–Mumbai and Delhi–Kolkata have moved up to around ₹6,000–₹6,500 from ₹5,500–₹6,000 a week earlier.
Industry experts say the full impact of deregulation will become clearer after April 15, when summer holiday travel demand picks up and booking volumes surge.
Feeder routes to major hubs such as Delhi, Mumbai and Bengaluru—critical for international connections—are already witnessing upward pressure on fares.
The removal of fare caps comes at a time when airlines are grappling with a sharp rise in operating costs:
Aviation turbine fuel (ATF) prices have surged amid the West Asia conflict
Fuel now accounts for 30–40 percent of airline costs
A weaker rupee is pushing up dollar-linked expenses such as aircraft leases and maintenance
Carriers, including Air India and SpiceJet, had argued that fare caps were no longer viable under current cost conditions.
While allowing market-driven pricing, the government has made it clear that airlines must avoid unreasonable fare spikes.
The earlier caps—ranging from ₹7,500 for short-haul routes to ₹18,000 for flights beyond 1,500 km—have now been fully withdrawn.
The move gives airlines greater flexibility, but also places them under scrutiny as travel demand rises and geopolitical tensions keep cost pressures elevated.