Air India has begun implementing fare caps following a government directive aimed at curbing soaring ticket prices amidst the ongoing IndiGo flight cancellation crisis. The Ministry of Civil Aviation (MoCA) issued this order in response to airlines charging exorbitant fares as a result of the mass cancellation of IndiGo flights over the past few days.
The government's intervention seeks to protect passengers from "any form of opportunistic pricing" and ensure that those who urgently need to travel are not subjected to financial hardship. The fare caps will remain in effect until the situation fully stabilizes.
Air India stated that while Air India Express has already completed the implementation of revised fares across its systems, Air India is in the process of applying the fare caps, which should be fully effective in the next few hours. The airline clarified that a phased rollout is necessary to ensure accuracy and stability without disrupting guest bookings, as the process involves third-party system dependencies.
Passengers who booked Air India flights in Economy Class during the transition period at prices exceeding the prescribed caps are entitled to refunds for the differential amount. In addition to capping fares, Air India and Air India Express have introduced a special waiver of change or cancellation fees on eligible domestic bookings. Guests who booked their flights until December 4, 2025, for travel until December 15, 2025, can reschedule their bookings to a future date without paying the applicable rescheduling fee or cancel their bookings with a full refund. This waiver is applicable for changes or cancellations made until December 8, 2025.
The MoCA's directive mandates strict adherence to the fare caps, with potential corrective action for any deviations. The ministry took note of concerns regarding unusually high airfares being charged by certain airlines during the ongoing disruption.
The fare limits, excluding applicable charges such as User Development Fee (UDF), Passenger Service Fee (PSF), and taxes, are not applicable for business class and UDAN flights. For flights up to 500 kilometers, the fares are capped at Rs 7,500, while for flights between 500 and 1,000 kilometers, the cap is Rs 12,000. Flights operating between 1,000 and 1,500 kilometers have a fare limit of Rs 15,000, and for distances above 1,500 kilometers, the cap is Rs 18,000. For example, a Delhi-Mumbai flight, which covers a distance of over 1,300 kilometers, will have its economy class fare capped at Rs 18,000.
The recent crisis at IndiGo, triggered by the implementation of revised Flight Duty Time Limitations (FDTL) rules, led to mass flight cancellations and a surge in airfares. The Directorate General of Civil Aviation (DGCA) introduced these rules to combat pilot fatigue and align Indian aviation with global safety standards. IndiGo, holding a dominant market share of 63% as of September 2025, faced scrutiny for failing to ensure timely arrangements for reliable operations. The DGCA has opened a formal inquiry and mandated fortnightly reports from the airline. The government also temporarily relaxed certain FDTL night-duty limits until February 10, 2026.
The situation has left many passengers stranded, with fares on other airlines skyrocketing. In some instances, Mumbai-Delhi flight fares soared to as high as Rs 51,000. The government's intervention, including fare caps and directives for refunds, aims to mitigate the impact on travelers and prevent exploitation during this period of disruption.
