The Central Government on Saturday directed airlines to comply with newly introduced fare caps on all disrupted routes, following a sharp surge in airfares amid ongoing flight disruptions triggered by
the operational crisis at IndiGo.
In an order, the Ministry of Civil Aviation said that it had acted “in the public interest” to curb “unreasonable surge” in fares caused by cascading operational problems at IndiGo. It said that IndiGo’s operational disruptions have resulted in large-scale flight cancellations, severe capacity constraints, and a sharp jump in last-minute fares, leaving thousands of passengers stranded.
The Fare Caps
The government has barred airlines from charging the following maximum fares for economy-class domestic travel:
Under the revised caps, airlines cannot charge more than Rs 7,500 for routes up to 500 km, and Rs 18,000 for routes exceeding 1,500 km.
| Stage Length (In Km) | Maximum Fare (In Rs) |
| Up to 500 km | Rs 7,500 |
| 500–1000 km | Rs 12,000 |
| 1000–1500 km | Rs 15,000 |
| Beyond 1500 km | Rs 18,000 |
As per the order, these limits are exclusive of UDF, PSF and taxes, and do not apply to Business Class or RCS-UDAN flights.
The ministry further directed that the limits will remain in force “until the fares stabilise or till further review.” It said that these fares would be applicable across all forms of booking — airline websites, apps, and third-party travel portals.
Airlines have also been told to maintain ticket availability across fare buckets and consider deploying additional capacity on sectors showing demand spikes.
Centre Seeks Strict Adherence To Fare Caps
Earlier today, the Centre cracked down on what it called ‘opportunistic pricing’ by airlines, as fares surged sharply across several domestic routes following IndiGo’s operational meltdown.
The MoCA issued an official directive to all airlines mandating strict adherence to the fare caps that have been prescribed. These fare caps would remain in force till the IndiGo flights situation fully stabilises.
The ministry said it had taken “serious note of unusually high airfares” and invoked its regulatory powers to ensure “fair and reasonable fares across all affected routes.”
“To safeguard passengers from any form of opportunistic pricing, the Ministry has invoked its regulatory powers to ensure fair and reasonable fares across all affected routes,” it said.
In addition, airlines have been barred from charging rescheduling fees for passengers whose travel plans were affected, ensuring that travellers are not penalised for operational disruptions.
The government said the move was essential to maintain pricing discipline and prevent exploitation at a time when thousands of travellers, including senior citizens, students and medical passengers, are struggling to secure seats after widespread cancellations.
To enforce compliance, the ministry will conduct continuous monitoring of fare levels through real-time data from airlines and online travel portals. Any airline found violating the caps will face “immediate corrective action,” the Ministry warned, adding that pricing discipline is critical to maintaining consumer trust during a volatile period for the aviation sector.
With the crisis stretching into its fifth day and hundreds of flights cancelled across major airports, it has caused a surge in fares of other mainlines like SpiceJet and Air India.
An economy class, one-way ticket for a two-stop Air India flight from Hyderabad to Mumbai was Rs 70,329, while another Air India connection from Hyderabad to Bhopal reportedly costs Rs 90,000.
