Indian Airlines Urge End to Fare Caps Amid Operational Woes From Iran Crisis

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Indian Airlines Urge Fare Cap Removal Amid Iran Crisis, Warn of Route Cuts

An Avianca plane sit on the tarmac at El Dorado airport in Bogota on November 28, 2025. Colombian airline Avianca reported on Friday "significant" disruptions to its flights due to a required Airbus software update affecting 70 percent of the company's fleet. (Photo by Sergio Yate / AFP)

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CNBC TV18•20-03-2026, 21:09

Indian Airlines Urge Fare Cap Removal Amid Iran Crisis, Warn of Route Cuts

•Indian airlines, including IndiGo, Air India, and SpiceJet, seek immediate removal of fare caps imposed in December.
•Airlines warn of route withdrawals and delayed expansion if fare caps persist, citing financial strain from the Iran crisis and Pakistani airspace ban.
•Fare caps were introduced in December due to IndiGo's mass flight cancellations, limiting one-way fares to 18,000 rupees.
•The Federation of Indian Airlines (FIA) states that airlines face "huge" revenue losses and higher operational costs due to rising jet fuel prices.
•The FIA also requested the withdrawal of a directive mandating 60% of seats without additional selection charges, fearing higher fares.

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