The government announced on Saturday that domestic airfares will now be capped between Rs 7,500 and Rs 18,000 depending on the flight distance, following a steep rise in ticket prices caused by widespread disruptions in IndiGo’s operations.
read also: IndiGo Announces Full Refunds and Free Rescheduling After Aviation Ministry Directive
According to the civil aviation ministry:
These fare limits exclude applicable charges and do not apply to business class or UDAN flights. The order did not clarify whether the limits cover only economy class or also extend to premium economy.
Under the new structure, flights covering up to 500 kilometres are capped at Rs 7,500, while routes between 500 and 1,000 kilometres have a price ceiling of Rs 12,000. Flights operating between 1,000 and 1,500 kilometres are restricted to Rs 15,000, and any flight exceeding 1,500 kilometres cannot charge above Rs 18,000. This means a Delhi Mumbai flight spanning more than 1,300 kilometres will have an economy fare cap of Rs 18,000.
The ministry said these limits will remain in effect until overall flight operations stabilise. The cap does not include the User Development Fee, Passenger Service Fee, or taxes applicable on air tickets. IndiGo’s operations have been severely affected for at least 5 consecutive days, resulting in widespread cancellations, lengthy delays, and numerous instances of misplaced baggage. On Saturday, the airline cancelled over 400 flights, and on Friday the number of cancellations exceeded 1,000.
According to the ministry’s statement:
Fare levels will be closely monitored through real time data and continuous coordination with airlines and online travel platforms.
It added that any breach of the prescribed limits will result in immediate corrective action in the public interest. The official order noted that disruptions at one major airline have created capacity shortages and triggered unreasonable fare spikes across several sectors. It also stated that these fare limits apply to all forms of booking, whether made directly on the airline’s website or through online travel agencies.
Airlines have been advised to avoid steep or unusual fare increases on routes affected by cancellations. A review of airfare listings on Friday showed extreme spikes, including a one way one stop SpiceJet economy ticket for a Kolkata Mumbai flight on December 6 priced at up to Rs 90,000, and an Air India Mumbai Bhubaneswar ticket costing as much as Rs 84,485.
Industry bodies expressed concern regarding the volatility. Indian Association of Tour Operators (IATO) President Ravi Gosain said unpredictable price surges weaken consumer trust and create significant challenges for tour operators. He added that while temporary caps offer immediate relief, long term solutions require strong contingency planning, swift capacity expansion, and transparent fare oversight. Federation of Associations in Indian Tourism and Hospitality Board Member Anil Kalsi said the fare cap is essential for protecting passenger rights and called for a permanent policy.
Meanwhile, the ministry has instructed IndiGo to complete all refunds for cancelled flights by Sunday evening and ensure that all separated baggage is delivered within the next two days. In a separate statement, the ministry said the refund process for all cancelled or disrupted flights must be finished by 8 pm on Sunday. Airlines have also been asked not to impose rescheduling charges on passengers whose travel plans were affected. IndiGo has been directed to establish dedicated passenger support and refund facilitation cells.
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