Airline companies will be able to increase domestic flight fares according to seat demand as the Civil Aviation Ministry has removed the cap on airfares. According to the order, this decision will be effective from March 23. The fare cap was imposed last December after disruptions in Indigo flights. The government had set the maximum fare for airlines at ₹18000. Airlines could not charge more than this. The order said… Flight capacity has been restored across the sector and operations have returned to normal. Following a review, it has been decided that the fare cap will be lifted effective March 23, 2026. Last year, the Directorate General of Civil Aviation (DGCA) amended the work regulations for pilots and other crew members, effective November 1st. This was called Flight Duty Time Limitation (FDTL). This led to a staff shortage at IndiGo, resulting in the cancellation of thousands of flights. This prompted other airlines to increase fares for domestic flights by up to 50,000 rupees. Ministry claims it was monitoring airfares In its initial order, the ministry also stated that airlines must maintain discipline and act responsibly in pricing. The ministry said airlines will ensure that fares are reasonable, transparent, and in line with market conditions, and that passenger interests are not adversely affected. The ministry said any excessive or unreasonable increase in fares will be viewed seriously. The order stated that the ministry is monitoring real-time airfare trends. Tickets were available at up to 10 times the price Following widespread cancellations and delays on IndiGo flights, fares skyrocketed, forcing passengers to buy tickets at ten times the normal price in search of alternative flights. According to the booking site MakeMyTrip, on December 6, the cheapest flight from Delhi to Bengaluru cost more than ₹40,000, while some flights went as high as ₹80,000. The lowest fare for a Delhi-Mumbai flight was ₹36,107, and the highest was ₹56,000. Late-night Delhi-Chennai flights ranged from ₹62,000 to ₹82,000. The government said, ‘we will ensure that the war does not affect the passengers’ Union Civil Aviation Minister Ram Mohan Naidu said on Saturday that the current war situation could impact the aviation sector. He added that efforts are being made to ensure that passengers are not burdened by the fare hike. He said all ministries will have to sit together. Oil prices and aviation turbine fuel (ATF) prices will certainly be affected, but they should not impact operations and passengers. This will be the ministry’s intention, and we will work positively. Naidu said that ATF prices are fixed on the first of every month. Therefore, the impact could be seen from April 1. He said that discussions with airlines are already underway. ATF is a refined petroleum product used to power aircraft. It typically accounts for 35 to 45 percent of an airline’s operating costs. Any surge in global crude oil prices directly increases ATF rates, putting pressure on airline finances and ultimately on ticket prices. March 18: Government decision: Airlines will not be able to charge extra for 60% of seats. Earlier on Wednesday, the Civil Aviation Ministry issued new regulations to make air travel in India more convenient. The new order requires airlines to book at least 60% of the seats on each flight without any additional charges. These guidelines apply to domestic flights. Additionally, passengers traveling on the same PNR (booking reference) will be seated together or assigned adjacent seats. Under current rules, only 20% of passengers’ seats can be booked without additional charges, while the remaining seats are chargeable. These steps have been taken because airlines are charging exorbitant fees for various services, including seat selection. According to reports, airlines currently charge between 500 and 3,000 rupees extra for selecting preferred seats. Post navigation How to avoid losses from stock market crash?:Know from experts what strategies retail investors should deploy to avoid losing money
