The Centre has withdrawn the temporary cap on domestic airfares imposed in the aftermath of the December 2025 flight disruption crisis involving IndiGo, marking a return to market-driven pricing as operations stabilise across the aviation sector.
In an order issued on Friday, the Ministry of Civil Aviation said the fare cap, introduced on December 6, 2025, was aimed at containing an “abnormal surge” in ticket prices and safeguarding passenger interests during a period of constrained capacity.
The ministry added that the situation has since “stabilised”, with restoration of capacity and normalisation of operations across the sector. Following a review, it said, the fare cap will stand withdrawn with effect from March 23, 2026.
