Government Reintroduces Airfare Caps to Protect Passengers from Skyrocketing Fares Amid IndiGo Crisis, Preventing Unjust Price Hikes on Popular Routes

Published on December 6, 2025

As the holiday season approaches, air travel in India is facing unprecedented disruptions, largely due to ongoing operational challenges at IndiGo, the country’s largest airline. In a move to protect passengers from sky-high ticket prices amidst this crisis, the government has reimposed airfare caps for the first time since the Covid-19 pandemic. With IndiGo canceling hundreds of flights and causing a massive strain on other carriers, the Ministry of Civil Aviation has stepped in to regulate fares, ensuring fair pricing during a time of chaos. This intervention, while crucial, comes too late for many travelers who have already been forced to scramble for last-minute, overpriced tickets. As the aviation industry works to stabilize, these fare caps aim to provide much-needed relief to those whose travel plans have been disrupted by this ongoing crisis.

Government Takes Action to Regulate Airfare Prices

The Ministry of Civil Aviation has expressed concern over the unusually high airfares charged by several airlines in the wake of the ongoing crisis at IndiGo. With the airline struggling to resume normal operations, the government has stepped in to safeguard the interests of travelers. According to the MoCA, the new fare caps are meant to “ensure fair and reasonable airfares across all affected routes,” preventing any form of opportunistic pricing.

These restrictions will remain in place until IndiGo’s operations are back to pre-crisis levels, which is expected by December 15. The airline has also been granted some relief in the form of postponed flight duty norms for pilots—intended to improve flight safety—to help it recover more swiftly from the crisis.

Impact of IndiGo’s Crisis on Passengers

The government’s intervention comes too late for many passengers who were already affected by IndiGo’s flight cancellations. Starting earlier this week, the airline began canceling hundreds of flights, a situation that is expected to persist until mid-December. Passengers, like Geeta Srivastava, have been forced to buy replacement tickets on other airlines at exorbitant prices. Srivastava, who had initially booked a round-trip flight from Delhi to Udaipur for Rs 11,000 with IndiGo, had to purchase a new return ticket with another carrier for Rs 24,000 due to IndiGo’s cancellations.

The crisis has disrupted the travel plans of lakhs of passengers, especially during this peak travel season. IndiGo, with its 65% share of the domestic market, has long been the most popular airline for domestic flyers. With the airline’s operations reduced drastically, the remaining 35% market share held by other airlines has been unable to accommodate the surge in demand. This demand-supply imbalance has resulted in sky-high ticket prices on other airlines, further aggravating the difficulties faced by travelers.

Government Directive on Fare Caps

To address the crisis, the aviation ministry issued an official directive on Saturday, mandating all airlines to strictly adhere to the newly imposed fare caps. These caps are designed to maintain order in the pricing structure of the market, ensuring that airlines do not exploit passengers who are already in distress. The MoCA aims to ensure that passengers, including senior citizens, students, and patients, who need to travel urgently are not subjected to undue financial hardship.

The ministry also assured that it would be closely monitoring the airfares in real-time, coordinating with airlines and online travel agencies to ensure compliance with the new pricing norms. Any airline found deviating from the prescribed caps will face immediate corrective measures, according to the government.

IndiGo’s Road to Recovery

IndiGo, which typically operates over 2,200 flights daily, has seen its operations severely affected by the ongoing crisis. As of Friday, the airline had canceled over 1,000 flights, with this number expected to gradually reduce as the airline works to stabilize its operations. IndiGo has stated that it aims to return to normalcy by mid-December, and the government’s intervention is seen as a crucial step in helping the airline manage the ongoing disruptions.

While the airline recovers, the government’s airfare caps will offer relief to passengers who are struggling to find affordable flights during the peak travel season. The ministry will continue to monitor the situation closely and take any necessary actions to protect consumers.

Conclusion

The reintroduction of airfare caps by the government marks a decisive step in regulating the aviation sector during a time of crisis. While the intervention has come too late for many passengers, it provides a much-needed safeguard against inflated ticket prices during the ongoing IndiGo disruptions. The government’s actions are expected to restore some balance to the market, offering protection to passengers who are already facing the brunt of travel-related challenges.