In the wake of widespread flight cancellations and surging airfares triggered by operational issues at IndiGo, Air India and Air India Express have stepped in to stabilize the market by capping fares for economy tickets and offering refunds to passengers who paid higher prices during the disruption. The move follows a directive from the Ministry of Civil Aviation (MoCA) on December 6, 2025, instructing all airlines to monitor and adhere to prescribed fare caps until the situation normalizes.
The government's intervention came after it took note of airlines charging exorbitant prices as stranded passengers rushed to book alternate flights amidst the mass cancellations of IndiGo flights. IndiGo, India's largest airline, has faced significant operational strain in recent days due to new crew-rostering rules, limited staff availability, and system issues, leading to over 1,000 cancellations on some days. This disruption has affected thousands of travelers across major hubs like Delhi, Mumbai, Bengaluru, and Hyderabad.
Air India announced it has begun rolling out the new fares, with Air India Express having already completed the implementation across its systems. Air India anticipates completing the process within a few hours, citing third-party system dependencies that necessitate a phased rollout to ensure accuracy and stability without disrupting guest bookings.
In addition to capping ticket prices, Air India has also stated that passengers who booked economy class tickets during the transition period at prices exceeding the mandated caps are entitled to refunds for the difference. This measure aims to alleviate the financial burden on travelers who urgently need to travel, including senior citizens, students, and patients.
The MoCA's directive aims to maintain pricing discipline, prevent exploitation of passengers in distress, and ensure fair and reasonable fares across all affected routes. The ministry has prescribed fare caps based on distance, ranging from ₹7,500 for flights up to 500 km to ₹18,000 for flights exceeding 1,500 km. These caps exclude User Development Fee (UDF), Passenger Service Fee (PSF), and taxes, and are not applicable for Business class tickets and flights under the UDAN scheme.
To assist affected passengers, Air India and Air India Express have introduced a one-time waiver on change and cancellation fees for eligible passengers. Passengers who booked tickets until December 4, 2025, for journeys until December 15, 2025, can modify their travel dates without rescheduling charges or cancel with a full refund, provided the changes or cancellations are made by December 8, 2025.
The MoCA has also directed IndiGo to complete the refund process for cancelled flights by 8:00 PM on December 7, 2025, and ensure the delivery of separated baggage within 48 hours. IndiGo has reportedly processed refunds totaling ₹610 crore. The ministry is closely monitoring fare levels through real-time data and coordination with airlines and online travel platforms, promising immediate corrective action for any deviations from prescribed norms.
While IndiGo's operations are gradually stabilizing, with the airline aiming to operate 1,650 flights on December 7 and stabilize operations by December 10, the government's intervention and the proactive measures taken by Air India and Air India Express seek to mitigate the impact of the disruption on passengers and restore normalcy to the aviation sector.
