IndiGo Crisis: Domestic Air Ticket Prices Capped at RS 7,500 to Rs 18,000

The Ministry of Civil Aviation (MoCA) has imposed temporary fare caps on economy class air tickets across all airlines after severe operational disruptions at IndiGo led to an unprecedented surge in airfares nationwide. The decision follows widespread criticism over passengers being charged unusually high prices as thousands of flights were cancelled this week.

In a statement issued on Saturday, the ministry said it had stepped in to prevent “unreasonable and exploitative pricing” during the crisis. The fare regulation, MoCA said, is aimed at ensuring affordability for passengers who are travelling under urgent circumstances, including students, senior citizens, and patients.

Under the new order, economy class fares are capped at ₹7,500 for routes up to 500 km, ₹12,000 for 500 to 1,000 km, ₹15,000 for 1,000 to 1,500 km, and ₹18,000 for routes beyond 1,500 km. These limits apply only to non-business class tickets and exclude airport charges and applicable taxes. Flights under the regional connectivity scheme and business class fares are outside the scope of this cap.

The ministry clarified that the fare ceilings will remain in force until ticket prices return to normal levels or until a fresh review is conducted. The directive applies to all booking platforms, including airline websites and online travel agencies. Airlines have also been advised to ensure adequate seat availability and consider adding extra capacity on high-demand routes.

India’s aviation sector usually operates under a deregulated pricing model, with fares guided by market forces. However, the government is empowered to intervene during extraordinary situations, as it did during the COVID-19 pandemic.

The current crisis was triggered by widespread flight cancellations at IndiGo, which controls more than 60 per cent of the domestic aviation market. On Friday alone, over 1,000 IndiGo flights were scrapped, stranding thousands of passengers and causing chaos at major airports. With limited seat availability, last-minute fares on several routes reportedly shot up to seven or eight times their usual levels.

Meanwhile, the Air India group stated that it had voluntarily capped economy fares on its domestic non-stop flights from December 4. The airline also said it is working with online booking platforms to prevent price surges and is trying to add additional capacity to assist stranded travellers.

The government said it will continue monitoring airfare trends closely and warned that violations of the new fare limits will invite immediate action.