The government has now allowed airlines to increase fares based on seat demand. The Civil Aviation Ministry has lifted the cap on airfares. According to the order, this decision will come into effect on March 23. Following the disruptions to IndiGo flights in December last year, the government imposed a fare cap. At that time, the maximum fare for airlines was set at ₹18,000. Airlines were clearly instructed not to charge more than this.
Now, capacity has been restored across the airline sector, and operations have returned to normal. After a review meeting, it was decided that the fare cap will be lifted from March 23, 2026.
What disrupted IndiGo flights?
In fact, the Directorate General of Civil Aviation (DGCA) amended the work regulations for pilots and crew members effective November 1 last year. The DGCA called this Flight Duty Time Limitation (FDTL). This led to a staff shortage at IndiGo, leading to the cancellation of thousands of flights. The cancellation of flights by the country’s largest airline company affected millions of people. Seeing the plight of people, other airlines increased domestic flight fares by up to 50,000 rupees to make profits.
There was no adverse impact on passenger interests – Ministry
While exempting the airline company, the Ministry clearly stated that airlines must maintain discipline in pricing and act responsibly. The Ministry clearly stated that airlines will ensure that fares are reasonable, transparent, and in line with market conditions. Passenger interests should not be adversely affected.
Will monitor passenger fares – Ministry
The Ministry stated that any excessive and unreasonable increase in fares should be viewed seriously. The order stated that the Ministry is monitoring airfare trends in real time.
IndiGo CEO resigns
IndiGo CEO Peter Elbers resigned, effective March 10, 2026. This decision follows the airline’s operational crisis over the past few months. However, Peter Elbers cited personal reasons for his resignation. Currently, the company’s founder and managing director, Rahul Bhatia, is taking over on an interim basis.
