In a significant intervention, the Indian government has stepped in to cap domestic air ticket prices following a week of massive flight cancellations by IndiGo that led to chaos and exorbitant fares. The Ministry of Civil Aviation announced the temporary measure on Friday, December 6, 2025, to protect passengers from what it termed an "unreasonable surge" in prices.
Government Imposes Fare Caps to Curb Soaring Prices
The directive, issued in the public interest, sets maximum fare limits based on the distance of the flight route. These caps are effective immediately and will remain until airfares stabilize or the ministry conducts a further review. The decision comes directly in response to the operational crisis at IndiGo, which saw the airline cancel over 1,600 flights across the nation in the past week.
This unprecedented level of cancellations severely reduced seat availability on major routes. The sudden scarcity, combined with high passenger demand, triggered a sharp and rapid increase in ticket prices, prompting the government's regulatory action.
New Distance-Based Fare Structure: What You Need to Know
The Ministry of Civil Aviation has established a clear, tiered structure for the maximum permissible airfare. The new limits are as follows:
- For flights covering a distance of up to 500 km, the maximum fare is capped at ₹7,500.
- For routes between 500 km and 1,000 km, the ceiling is set at ₹12,000.
- For journeys spanning 1,000 km to 1,500 km, passengers cannot be charged more than ₹15,000.
- For all flights over 1,500 km, the maximum fare is ₹18,000.
It is crucial for passengers to note that these fare limits exclude all airport levies, taxes, the User Development Fee (UDF), and the Passenger Service Fee (PSF). The caps apply to all economy class bookings, whether made directly on airline websites or through online travel agencies (OTAs). However, they do not apply to business class tickets or flights operated under the government's Regional Connectivity Scheme, UDAN.
Airlines Directed to Support Passengers and Add Capacity
Alongside the fare caps, the government has issued specific instructions to airlines to manage the ongoing disruption. The Directorate General of Civil Aviation (DGCA) has been tasked with monitoring strict compliance with the new fare regulations.
Airlines are now mandated to maintain adequate seat availability and are encouraged to explore adding extra capacity on high-demand sectors to alleviate the shortage. They have been expressly told to avoid steep fare spikes on routes affected by the cancellations.
Most importantly, carriers must provide maximum support to affected passengers. This includes offering feasible rebooking options, refunds, and assistance to those stranded by the sudden cancellations. The government's overarching goal is to ensure fair and reasonable pricing for the traveling public and to prevent opportunistic price gouging during this period of operational instability.
The situation highlights the vulnerability of the domestic aviation market to large-scale disruptions from a major player. While the fare caps offer immediate relief to passengers, the long-term resolution hinges on IndiGo restoring its full schedule and operational normalcy returning to the skies.
