India to Lift Domestic Flight Fare Caps from March 23

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New Delhi: Ministry of Civil Aviation has announced that temporary fare caps on domestic flights will be withdrawn from Monday, March 23, marking the end of a price-control measure introduced to stabilise the aviation sector.

The fare caps were initially imposed on December 6, 2025, following large-scale disruptions at IndiGo that led to sharp fluctuations in ticket prices. The move aimed to protect passengers and ensure affordability during a period of limited flight capacity.

In an official order, the Ministry said the sector has since stabilised, with flight operations returning to normal and capacity largely restored. Based on this assessment, airlines will now be allowed to determine ticket prices based on market demand and supply.

While lifting the restrictions, authorities have urged airlines to maintain pricing discipline and ensure fares remain reasonable and transparent, without adversely impacting passengers.

The Ministry also warned that it will continue to closely monitor airfare trends. Any excessive or unjustified surge in ticket prices, particularly during peak travel periods or disruptions, could prompt regulatory action, including the possible reintroduction of fare caps if necessary.