A New Era for Air Travel
For months, the Indian government regulated domestic air ticket prices, setting upper and lower limits to protect consumers from extreme price volatility. This system was put in place in December 2025 following widespread flight disruptions that caused
fares to skyrocket. However, as of March 23, 2026, those caps have been officially removed. The Ministry of Civil Aviation decided to lift the restrictions after determining that airline operations and capacity had returned to normal. This move restores full pricing freedom to airlines, allowing them to use dynamic pricing models based on demand, a strategy common before the temporary caps were introduced.
What Does This Mean for Festive Fares?
Without the government's ceiling, airlines can charge what the market will bear, and the festive season is peak demand. This year, Diwali falls on November 8, with peak travel expected from late October through mid-November. Recent reports from September 2026 already show a significant surge in ticket prices on major domestic routes. For instance, return fares around the Diwali weekend for routes like Delhi-Hyderabad and Delhi-Kolkata were hovering around ₹17,000-₹18,000. Routes connecting major cities to hometowns, such as Mumbai to Patna or Lucknow, have seen prices jump by 30-35%, sometimes exceeding ₹18,000 for a one-way ticket. This price pressure is compounded by rising Aviation Turbine Fuel (ATF) costs, which account for over 40% of an airline's operating expenses. While the Civil Aviation Minister has stated the government will advise airlines to keep prices reasonable, no cap will be enforced.
Travellers Remain Undeterred
Despite the prospect of expensive tickets, the desire to travel during the festive season remains strong. Festivals have become a primary driver for holiday planning in India, with families and individuals keen to connect with loved ones or take a celebratory vacation. A 2024 survey showed that three-quarters of urban Indians planned to travel during the festive window between September and December. This sentiment appears to be holding true, as travel portals and airlines are observing continued booking interest. Many travellers are adapting rather than cancelling, showing increased flexibility with dates and even destinations to find better value. This high demand, coupled with tighter airline capacity compared to the previous year, is a key reason why prices are climbing.
Your Smart Guide to Festive Booking
Navigating the uncapped fare environment requires a strategic approach. The most effective way to save money is to book well in advance. For Diwali travel, experts suggest booking 60 to 90 days ahead to secure reasonable prices. Last-minute bookings can cost two to three times more than standard fares. Flexibility is your next best friend. Flying on a weekday instead of a weekend can lead to significant savings. Flying on Diwali day itself can be 20-40% cheaper than travelling in the days immediately preceding it. Also, consider flying into alternative, tier-2 airports, which may offer lower fares. Finally, use online travel aggregators and fare comparison tools to monitor prices and set up alerts for your desired route. This allows you to act quickly when a good deal appears, ensuring you don’t miss out on the best possible price for your festive journey.
