Key Points
- Fare caps effective immediately across all domestic flights in economy class
- Up to 500 km capped at ₹7,500, 500-1000 km at ₹12,000, 1000-1500 km at ₹15,000, above 1500 km at ₹18,000
- Caps exclude user development fees, passenger service fees, and taxes
- Business class and UDAN flights exempt from the cap
- Applies to all booking platforms, airline websites, and travel apps
- Airlines instructed to keep tickets available in all fare categories
- Measure taken after IndiGo cancellations caused fares to exceed ₹1 lakh on some routes
Amidst the chaos surrounding air travel due to IndiGo’s unbalanced operations, the Ministry of Civil Aviation has taken decisive action to protect passengers by imposing maximum fare limits on domestic flights. The government has stopped airlines’ arbitrary pricing by setting a ceiling on what they can charge, preventing them from exploiting the current crisis. According to the ministry’s order, this step was necessary to control the chaos caused by reduced flight numbers due to the IndiGo crisis and to protect the budget of ordinary people.
The new rule came into effect immediately on December 5, 2025, and will remain in place until airfares stabilise or are revised again. The Ministry has made it clear that under no circumstances will passengers be charged fares above the prescribed limit. This historic decision aims to protect both time and money for passengers who have been severely impacted by flight cancellations and subsequent price surges.
Fare Structure Based on Distance
The government has established different fare slabs based on distance to maintain transparency and ensure reasonable pricing across all domestic routes. Under the new rules, travellers on routes up to 500 kilometres will not be charged more than ₹7,500. For distances between 500 and 1000 kilometres, the maximum fare has been set at ₹12,000.
If the journey is between 1000 and 1500 kilometres, the maximum fare will be ₹15,000, and for distances greater than 1500 kilometres, the cap is ₹18,000. These caps apply specifically to economy class tickets and do not include user development fees, passenger service fees, and taxes, which remain separate charges. Furthermore, this rule does not apply to business class and UDAN flights, which follow separate pricing regulations.
Scope and Enforcement Across Platforms
The Ministry of Civil Aviation has clearly directed that this new fare limit will apply equally to all platforms, including airline websites, online travel agencies, and booking apps. No platform will be able to evade these caps or add additional charges beyond the prescribed limits. The government has also instructed all airlines to keep tickets available in all fare categories and to increase capacity where demand is high.
The Directorate General of Civil Aviation (DGCA) has been instructed to monitor and regulate fares on the listed routes to ensure compliance. Any violation of these fare caps will invite strict regulatory action from the ministry. This comprehensive approach ensures that passengers are protected across all booking channels and prevents any circumvention of the new rules.
Background, IndiGo Crisis Trigger
The government’s intervention comes after IndiGo’s operational difficulties caused a severe reduction in flights, leading to unprecedented fare surges across domestic routes. Over the past few days, IndiGo Airlines’ crisis has led to numerous flight cancellations, with more than 1,000 flights cancelled on December 5 alone, directly impacting passengers’ pocketbooks as flight ticket prices skyrocketed.
Reports indicated that fares on some routes had exceeded ₹1 lakh, prompting the government to take this historic decision to protect consumer interests. The crisis began when IndiGo failed to properly plan for revised Flight Duty Time Limitation norms, leading to a pilot shortage and cascading cancellations across its network. With thousands of passengers stranded and alternative travel options becoming prohibitively expensive, the ministry acted in the public interest to restore affordability and order to the aviation sector.
