In a significant move to protect passengers from surging airfares, the Air India Group has swiftly implemented a government-mandated cap on economy class base fares. The action comes in direct response to a directive from the Ministry of Civil Aviation (MoCA) issued on the evening of 6 December 2025.
Immediate Rollout of Prescribed Fare Caps
Air India and its subsidiary, Air India Express, announced they have begun rolling out the new prescribed fares across their reservation systems. The airlines made the announcement via an official post on social media platform X (formerly Twitter) on 8 December 2025.
The group stated that Air India Express has already completed the implementation across its systems. Air India, however, is applying the fare caps in a progressive manner to ensure system stability. The airline confirmed the new capped fares would be fully effective within the next few hours from the time of the announcement.
The phased approach is necessary due to dependencies on third-party systems, a measure taken to prevent any disruption to existing guest bookings while ensuring accuracy.
Refunds for Passengers Affected During Transition
A key part of the announcement addresses passengers who may have booked tickets at higher prices during the transition period. Air India has committed to providing refunds for the differential amount.
"Guests who may have booked Air India flights in Economy Class during the transition period, at base fares above the prescribed caps, are entitled to refunds of the differential amounts," the airline clarified. This ensures that travelers who paid more than the newly capped fare will be reimbursed the difference.
Context and Broader Impact
This regulatory intervention by MoCA and the subsequent compliance by airlines is widely seen as a measure to stabilize the domestic aviation market. The directive aims to prevent excessive fare hikes, especially during periods of high demand or operational disruptions within the industry.
The Air India Group's prompt action highlights the increasing scrutiny on airline pricing practices and the government's focus on consumer protection in the civil aviation sector. The move is expected to bring immediate relief to economy class travelers and set a precedent for fare transparency.
