The Central Government has removed the cap on domestic airfares, paving the way for airlines to increase ticket prices from Monday. The move is expected to make air travel more expensive, particularly during peak travel periods and holiday seasons, as carriers gain full freedom to adjust fares based on demand. The cap had been imposed in December 2025 after fare spikes triggered by disruptions in IndiGo operations.
While airlines now enjoy pricing flexibility, the Ministry of Civil Aviation has issued a strong warning against unfair fare hikes, stating that strict action will be taken if passengers are exploited. Officials also assured continuous monitoring of ticket prices. The decision comes against the backdrop of rising aviation fuel costs linked to the Iran–Israel conflict, which has significantly increased operational pressure on airlines.
