Government Caps Domestic Airfares Amid IndiGo Disruptions

New Delhi, Dec 2025 : The Ministry of Civil Aviation on Saturday imposed a country-wide cap on domestic airfares to curb the sharp rise in ticket prices following massive flight disruptions at IndiGo, which caused widespread cancellations and reduced capacity across multiple routes.

Under the ministry’s order, airlines are prohibited from charging above the newly prescribed maximum fares until flight operations stabilise. The caps, introduced in the public interest, vary based on the length of the route.

For flights covering up to 500 km, the maximum fare is set at Rs 7,500. Routes between 500 km and 1,000 km cannot exceed Rs 12,000, while flights spanning 1,000 to 1,500 km are capped at Rs 15,000. Long-haul domestic sectors over 1,500 km have a ceiling of Rs 18,000.

These limits exclude applicable taxes and charges and do not apply to business class or UDAN flights. The ministry has not clarified whether premium economy fares are included, but the caps are confirmed for economy class.

The decision comes after airfare spikes observed since December 4, when online travel platforms reported inflated last-minute ticket prices caused by a mismatch between demand and reduced available capacity. The government said it will monitor fare levels in real time and coordinate with airlines and booking platforms to ensure strict adherence. Any violation of the caps will result in immediate corrective action.

In addition to the fare regulation, the ministry directed IndiGo to expedite all pending passenger refunds, ensuring that the refund process for cancelled or disrupted flights is completed by 8 PM on Sunday, December 7.

Passengers affected by misplaced baggage are also being prioritised. The airline has been instructed to locate and deliver all unclaimed baggage to passengers’ homes or chosen addresses within 48 hours.

These interventions aim to stabilise domestic air travel costs and alleviate passenger inconvenience until IndiGo’s operations return to normal. The government emphasised that these measures are temporary, designed solely to protect consumers from sudden fare hikes and ensure passenger rights are respected during the ongoing operational challenges.

Officials noted that these steps would also help restore confidence in domestic air travel, which has been shaken by repeated flight cancellations, last-minute schedule changes, and surging ticket prices. Airlines have been asked to strictly comply with the new rules while continuing efforts to normalise services.

Passengers are advised to check fares on official airline websites or authorised booking platforms and report any violations of the prescribed limits to the ministry for prompt action.