Government Lifts Airfare Cap: Domestic Travel Costs May Rise During Peak Periods

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Govt Ends Airfare Cap: Expect Higher Prices During Peak Demand

No more cap on airfares: Flight ticket prices set to fluctuate freely

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News18•22-03-2026, 10:34

Govt Ends Airfare Cap: Expect Higher Prices During Peak Demand

•Government lifts airfare caps, allowing airlines to set prices based on demand and market conditions.
•The temporary fare ceiling, introduced in December 2025 due to flight cancellations and price spikes, has been withdrawn.
•Airlines can now adjust fares dynamically, potentially leading to higher prices during holidays, disruptions, or last-minute bookings.
•The Civil Aviation Ministry will monitor pricing behavior and may reintroduce regulatory intervention if there's an excessive surge in fares.
•The decision aims to help airlines facing cost pressures from volatile fuel prices and supply chain challenges.

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