Govt allows airlines full pricing freedom amid rising costs
March 22, 2026: The Government of India has lifted the temporary cap on domestic airfares, allowing airlines to set ticket prices independently. The cap, introduced in December 2025 to control rising fares during a flight shortage, has now been withdrawn, giving carriers flexibility to adjust pricing based on demand, routes, and operational costs.
Industry experts believe the move could lead to higher fares on busy routes, especially during peak travel seasons, though competition among airlines may prevent steep increases. The decision also comes amid rising global fuel costs driven by ongoing international conflicts, which have already impacted international ticket pricing and added pressure on the aviation sector.
Airlines have welcomed the decision, saying it will help improve route planning and service quality. Analysts suggest that domestic fares may gradually align with global pricing trends, reflecting market realities. Travellers are advised to book early and keep track of fare changes, as ticket prices are expected to fluctuate more frequently in the coming months.