In a rapid response to the nationwide travel chaos triggered by IndiGo’s massive cancellations, Air India and its low-cost arm Air India Express have begun applying fresh fare caps and offering relief to stranded passengers. The move comes after Ministry of Civil Aviation imposed emergency limits on economy-class fares across India to curb opportunistic price surges.
Since December 4, both carriers have proactively capped domestic economy fares on all non-stop flights. In line with the government directive issued on December 6, the maximum base fares are now fixed at ₹7,500 (up to 500 km), ₹12,000 (500–1,000 km), ₹15,000 (1,000–1,500 km) and ₹18,000 (over 1,500 km).
Air India clarified that Air India Express has fully implemented the new fare structure across its booking system.
Air India is also offering a one-time waiver on change or cancellation fees for eligible domestic bookings. Customers who booked until December 4 for travel up to December 15 can reschedule or cancel their flights (if done by December 8) without incurring those usual fees.
Moreover, passengers who purchased tickets during the transition period at fares above the newly prescribed caps will receive refunds for the difference.
The crisis began when IndiGo — the country’s largest domestic carrier — cancelled hundreds of flights over recent days following its failure to adapt to new crew-rostering/norms issued by the Directorate General of Civil Aviation (DGCA). The disruption caused a sharp drop in available seats, leading to steep fare hikes across multiple routes.
MoCA stepped in, deploying its regulatory powers to cap fares and curb what it described as “unreasonable surge” in prices — especially troublesome as the country entered peak travel season.
The fare-cap order applies to all airlines, across booking channels (airline websites, OTAs, agents), and covers only economy class fares. It excludes airport levies, taxes, and business-class tickets.
--Travellers flying economy on domestic non-stop flights should expect fares to remain within capped limits until the government lifts the restriction.
--Those who booked already at higher fares will be refunded the difference This will be a small relief for passengers who were forced to pay and rebook amid chaos.
--If you booked any flight on or before 4 December for travel up to 15 December, you can still reschedule or cancel until 8 December without paying fees, thanks to the waiver.
--Given the phased rollout by Air India, it’s wise to double-check fare details on your flight confirmation if you booked recently — to ensure you’re not overcharged.
The fare cap and relief measures are aimed at restoring confidence among travellers at a time of heightened disruption. With large-scale cancellations by IndiGo leaving thousands stranded and booking rates skyrocketing, many holiday-season plans were thrown into uncertainty.
By acting quickly — imposing caps, offering refunds, and waiving fees — Air India Group and the government hope to stabilise domestic air travel and ensure fair access, especially for essential travellers such as senior citizens, patients, and students.
For now, this intervention may bring short-term relief. Whether it suffices to restore trust depends on how smoothly airlines handle the backlog and rescheduling, and whether flight capacity returns to normal soon.
