Govt Caps Airfares After Mass Flight Cancellations; Airlines Told to Follow Emergency Rules

New Delhi, 6th December 2025: With domestic airfares soaring due to mass cancellations by a major Indian airline, the Ministry of Civil Aviation (MoCA) has issued an emergency fare cap order to shield passengers from surge pricing and restore stability in the aviation sector.

Issuing an Order, the Central Government said the cascading disruptions had triggered “artificial and unreasonable fare hikes,” prompting immediate intervention in the public interest.

New Maximum Fare Caps Announced
Airlines must comply with the following upper limits on economy-class airfares (exclusive of UDF, PSF, and taxes):
Up to 500 km: Maximum Rs 7,500
500–1000 km: Maximum Rs 12,000
1000–1500 km: Maximum Rs 15,000
Above 1500 km: Maximum Rs 18,000
Note: These limits do not apply to Business Class or RCS-UDAN flights.

Mandatory Compliance for All Airlines
-MoCA has laid down strict rules applicable across all domestic scheduled airlines:
-Fare caps apply to all booking channels — airline websites, apps, counters, and travel agents.
-Airlines must maintain transparent seat availability across fare buckets.
-No carrier may reduce capacity or manipulate seat inventory to bypass fare limits.
-The emergency fare caps will remain in force until normal flight operations resume or until further orders.

The ministry stressed that emergency action was essential to shield passengers—many of whom were left scrambling for seats at inflated last-minute prices after large-scale cancellations disrupted travel nationwide.

The message shared by Minister of State for Civil Aviation Murlidhar Mohol on Instagram encapsulated the ministry’s stance:
“In the public interest, the Ministry of Civil Aviation has issued fare caps to prevent unreasonable surge pricing caused by recent disruptions. We are committed to protecting passengers and ensuring stable, affordable air travel.”

A Timely Intervention Amid Holiday Travel Rush
The fare control order comes at a critical moment, with thousands of passengers already affected and the holiday travel season approaching. Sudden cancellations by one major airline had triggered a domino effect—reducing seat availability and pushing fares to levels many travellers could not afford.

By imposing nationwide fare caps, MoCA aims to stabilise the aviation ecosystem, prevent exploitation, and ensure that passengers continue to have access to reasonably priced flights until normalcy returns.