India Lifts Domestic Airfare Caps from March 2026

India's Ministry of Civil Aviation announced on Saturday that it will lift temporary price caps on domestic airfares effective March 23, 2026, marking a return to market-driven pricing after months of regulatory controls aimed at protecting passengers from volatility.

The decision ends restrictions imposed on December 6, 2025, in response to widespread flight disruptions caused by IndiGo, the country's largest airline. IndiGo's operational issues, including a pilot rostering crisis, led to thousands of cancellations in late 2025, creating a severe supply shortage and driving up ticket prices on major routes. To curb what officials described as unreasonable surges, the ministry enforced upper limits on economy-class fares, excluding taxes and airport charges. These ranged from 7,500 rupees for flights up to 500 kilometers, to 15,000 rupees for routes between 1,000 and 1,500 kilometers, such as Delhi to Mumbai, and up to 18,000 rupees for longer sectors exceeding 1,500 kilometers.

The caps were introduced during a period of acute stress in the aviation sector, when constrained capacity left millions of travelers facing inflated costs for essential trips. Government officials noted...