Image for representational purposes only. | Photo credit: Reuters
The center has withdrawn the fare caps that were introduced in December to curb the surge in fares following the widespread cancellation of IndiGo flights.
In an order dated March 21, the Ministry of Civil Aviation said: “The prevailing situation has since stabilized, capacity has been restored and operations have normalized across the sector, after review it has been decided that the fare cap imposed in the above letter will be withdrawn with effect from March 23, 2026.”
The decision comes at a time when airlines are being hit hard by the conflict in West Asia, which is leading to increases in aviation turbine fuel (ATF) prices, as well as flight cancellations and diversions that burn more fuel and are more expensive.
But the ministry said that airlines must ensure price discipline. “Airlines will ensure that fares remain reasonable, transparent and proportionate to market conditions and that passengers’ interests are not adversely affected.”
It also warned of regulatory action, including the reintroduction of fare caps, should there be an unjustified increase in fares.
Published – 21 March 2026 23:41 IST
