New Delhi: The Ministry of Civil Aviation has announced that airlines will be allowed to increase domestic flight fares according to seat demand, lifting the freeze that had been in place since December. The new order will come into effect March 23, 2026.

Background of the Fare Cap

The fare cap was imposed last December following widespread disruptions in IndiGo flights due to a shortage of crew after the Directorate General of Civil Aviation (DGCA) implemented the Flight Duty Time Limitation (FDTL) rules on November 1, 2025.

The government had capped maximum fares at ₹18,000, but passengers were forced to pay significantly higher prices during flight cancellations and delays, with fares reportedly reaching up to ten times the normal rate on some routes.

For instance, MakeMyTrip reported that on December 6, Delhi-Bengaluru flights ranged from ₹40,000 to ₹80,000, Delhi-Mumbai from ₹36,107 to ₹56,000, and late-night Delhi-Chennai flights from ₹62,000 to ₹82,000.

Government Directives and Monitoring

The Ministry emphasized that airlines must maintain discipline and act responsibly while setting fares. Airlines are expected to ensure that fares remain reasonable, transparent, and aligned with market conditions, without adversely affecting passengers. Any excessive or unreasonable fare hikes will be monitored and dealt with strictly.

Civil Aviation Minister’s Statement

Union Civil Aviation Minister Ram Mohan Naidu noted that ongoing war-related tensions could impact the aviation sector, particularly oil and aviation turbine fuel (ATF) prices. However, he assured that efforts are being made to shield passengers from fare burdens. He stated that all relevant ministries would coordinate to ensure smooth operations and mitigate fare increases wherever possible.

With the fare cap lifted, airlines now have flexibility to adjust prices based on demand, while the government continues real-time monitoring to protect passenger interests.