Government Caps Domestic Airfare; Issues Strict Orders on Refunds and Rescheduling Charges
- bySagar
- 06 Dec, 2025
New Delhi: In a major step to protect passengers from sudden fare hikes, the Ministry of Civil Aviation has fixed maximum ticket prices for domestic flights and ordered airlines to strictly comply with the newly issued fare limits. The directive comes amid chaos triggered by the cancellation of several IndiGo flights, which led to an unexpected spike in airfares across multiple carriers.
The ministry has also instructed IndiGo to release all pending passenger refunds without delay, setting a strict deadline for airlines to complete the refund process for canceled or disrupted flights.
Fare Surge Triggers Government Action
The abrupt cancellation of several IndiGo flights created widespread inconvenience for passengers, leading to last-minute fare increases by many carriers. Social media was soon flooded with complaints, memes, and screenshots exposing unusually high airfares. With travelers—especially students, senior citizens, and medical passengers—struggling to afford emergency travel, the government stepped in.
To restore “pricing discipline” during the crisis, the Ministry of Civil Aviation invoked its regulatory powers and issued an official order to all domestic carriers, mandating compliance with the newly set fare ceilings.
New Maximum Fare Structure Introduced
Under the government’s directive, the following maximum one-way fares have been implemented for economy class tickets across all domestic airlines:
| Distance (km) | Maximum Ticket Price |
|---|---|
| Up to 500 km | ₹7,500 |
| 500–1000 km | ₹12,000 |
| 1000–1500 km | ₹15,000 |
| Above 1500 km | ₹18,000 |
These limits apply only to economy-class bookings and will remain enforced until the situation normalizes. The fare caps apply universally—whether tickets are purchased through an airline website, mobile app, travel agent, or online travel aggregator.
The ministry has also directed airlines to ensure ticket availability across all booking classes and increase capacity if necessary to prevent artificial scarcity.
Business Class & UDAN Flights Exempt
According to the aviation ministry, the newly fixed fare limits are applicable only to economy-class tickets. Business-class fares and flights operating under the regional connectivity scheme (UDAN) are exempt. However, carriers have been warned against manipulating seat availability or altering inventory to bypass fare ceilings.
Mandatory Refunds and Zero Rescheduling Fees
In one of the strongest measures announced, the ministry directed IndiGo to immediately release all pending refunds to passengers affected by cancellations and disruptions. Airlines must complete the refund process for all impacted flights by 8 PM on Sunday, without fail.
Additionally, airlines have been instructed to waive all rescheduling charges for passengers whose travel plans were affected due to cancellations. Whether the passenger opts for a later flight or seeks a route change, no extra fee can be imposed.
The ministry has clearly stated that any delay, non-compliance, or refusal to honor these directives will result in strict regulatory action against the airline involved.
Aim: Prevent Exploitation During Crisis
Officials said that the decision to cap fares temporarily was taken to protect travelers from exploitation during a situation of operational disruption. The move is expected to bring immediate relief to thousands of passengers who were forced to deal with sudden price surges while trying to book last-minute flights.
The government emphasized that the priority is to ensure affordable travel, maintain transparency in pricing, and prevent airlines from taking advantage of the crisis.
Passengers Welcome the Move
The decision has been widely appreciated by passengers, many of whom shared frustration over unexplained fare spikes. The fixed fare structure is expected to bring stability to pricing until operations return to normal.
With airlines now under strict monitoring, passengers can expect faster refunds, zero rescheduling charges, and more predictable fares in the days ahead.






