Air India has introduced new fare caps for domestic flights after the government asked all airlines to control prices. This step comes amid a crisis triggered by IndiGo, which recently canceled hundreds of flights, leaving thousands of passengers stranded and forcing ticket prices to spike.
The Ministry of Civil Aviation issued a directive specifying maximum economy-class fares for domestic travel. For flights under 500 km, fares cannot exceed ₹7,500. Flights covering 500–1,000 km are capped at ₹12,000, those between 1,000–1,500 km at ₹15,000, and flights over 1,500 km at ₹18,000. These limits do not include taxes and additional charges.
Air India and its subsidiary, Air India Express, had already started implementing fare caps from December 4, anticipating the government order. The airlines are gradually updating these new fares across their booking platforms. Passengers who had booked tickets above the new limits will receive refunds for the difference.
The move is aimed at protecting travelers from sudden fare hikes during a period of major disruption in India’s aviation sector. It also brings some stability and predictability for passengers who need to travel urgently.
Industry experts say that the government’s intervention reflects its concern for consumer welfare, especially during peak travel times and unforeseen airline operational issues. While fare caps are temporary, they provide immediate relief to passengers and set a precedent for managing price surges in crisis situations.
Travelers are advised to check fares carefully before booking and to look out for refunds if they paid above the new limits. Air India’s prompt response could ease some of the stress caused by IndiGo’s flight cancellations and restore confidence in domestic air travel.
