India’s Domestic Airfare Crisis Persists as 59% of Travelers Report Airlines Ignoring Government’s Fare Caps Amid Holiday Chaos: What This Means for Passengers in Delhi, Mumbai, Bengaluru and Across India!

Published on December 14, 2025

India’s domestic airfare crisis continues to escalate as 59% of travelers claim airlines are ignoring the government’s fare caps, despite the Ministry of Civil Aviation (MoCA) imposing price limits on domestic flights. This comes amid the holiday chaos that has left passengers in cities like Delhi, Mumbai, and Bengaluru frustrated. The government’s decision to cap fares on economy, non-stop domestic flights was a temporary step to curb soaring ticket prices during the peak travel season. However, 59% of travelers surveyed reported that they still encountered ticket prices exceeding the capped limits. This discrepancy raises significant concerns for passengers across India, especially during the busiest travel period of the year.

With airlines failing to comply with the caps, many passengers are questioning whether the government can effectively enforce these fare regulations or if prices will continue to rise uncontrollably.

The Government’s Intervention and Fare Cap Implementation

The government’s decision to impose airfare caps was a direct response to widespread passenger complaints regarding sharply rising ticket prices in early December. The spike in prices was particularly noticeable between December 3 and 6, a period marking the height of the holiday travel rush. Under the new regulations, MoCA directed airlines to limit the base fare on economy-class, non-stop domestic flights based on distance:

• ₹7,500 for routes up to 500 km
• ₹12,000 for 500–1,000 km
• ₹15,000 for 1,000–1,500 km
• ₹18,000 for flights beyond 1,500 km

Importantly, the government emphasized that taxes and airport charges would be applied separately. The initiative was presented as a temporary measure intended to mitigate the impact of inflated fares while airlines worked to restore normal capacity. Despite the government’s assurances, however, concerns over non-compliance by airlines have continued to mount.

Survey Reveals Passenger Frustration

LocalCircles, a community platform that conducts nationwide surveys, recently conducted a survey of over 25,000 airline passengers to assess their experiences with airfare pricing following the government’s intervention. The survey, which gathered responses from 291 districts across the country, highlighted troubling feedback regarding airline adherence to the fare caps.

According to the findings, 59% of respondents reported encountering instances where fares exceeded the prescribed caps. While 21% of those surveyed confirmed that airlines were adhering to the fare limits in every case they checked, the remainder were either unsure or had not noticed any instances of non-compliance.

The survey also revealed that a significant number of complaints had been submitted to LocalCircles, alleging that airlines were continuing to charge above the capped fare rates, despite assurances that the fare caps had been implemented.

The Impact of IndiGo’s Flight Cancellations

Adding to the turmoil, the situation was exacerbated by widespread flight cancellations, particularly from budget carrier IndiGo, which had to cancel numerous domestic flights. IndiGo attributed these cancellations to unforeseen operational challenges, with a major factor being the new Flight Duty Time Limitations (FDTL) rules imposed by the Directorate General of Civil Aviation (DGCA). The FDTL regulations, aimed at improving pilot and crew safety, have placed a strain on the airline’s operations, leading to significant flight disruptions.

In response to the cancellations, many passengers found themselves scrambling for alternate flights, often at inflated prices, despite the government’s efforts to curb fare hikes. The confusion and inconvenience of dealing with last-minute cancellations combined with high fares created additional stress for travelers, many of whom were already concerned about the holiday travel rush.

Airline Reactions and Compliance Efforts

In the wake of the government’s airfare cap mandate, airlines, including Air India and Air India Express, have claimed to comply with the new rules. Air India Express, for instance, stated that the capped fares had been fully implemented across its booking systems, and passengers could now book flights at the capped rates. Meanwhile, Air India reported that while it had updated its systems, the implementation was being carried out in phases due to the complexities of system integration.

Both airlines also announced a range of initiatives to address passenger concerns, including waiving change and cancellation fees for impacted travelers and adding extra flights to high-demand routes. Additionally, Air India committed to refunding any passengers who were charged more than the prescribed fare during the transition period.

Despite these assurances, the latest survey from LocalCircles casts a shadow over these claims of compliance. With the majority of passengers still reporting instances of fare hikes above the government’s prescribed limits, it raises questions about the enforcement mechanisms in place.

The Enforcement Challenge

One of the major issues identified in the survey was the lack of visible enforcement of the fare cap order. While the MoCA directive was clear in its intent, the government has struggled to ensure that airlines comply with these price restrictions across the board. The complexity of the airline booking systems and the varying levels of technological infrastructure at different airlines appear to have slowed down the full implementation of the fare caps.

This issue is particularly concerning given the high demand for domestic flights during the festive season. With millions of people traveling to visit family or go on vacation, the demand for flights has skyrocketed, making it more critical than ever for the government to ensure that fare caps are strictly enforced.

Passenger Experience: A Mixed Bag

The survey results underscore the frustration felt by passengers who have encountered inconsistent fare pricing. Many respondents expressed disappointment that the government’s intervention had not resulted in significant changes, with some stating that they had experienced price gouging despite the government’s attempts to control fares. For passengers, the experience of seeing fares exceed the caps has only added to the sense of dissatisfaction.

Furthermore, the survey revealed that while some passengers were able to book flights at the capped fares, others found that the prices they were charged did not align with the regulations. The inconsistency in fare application has further contributed to the sense of confusion and frustration.

What’s Next for the Fare Cap Initiative?

As the busy holiday travel period continues, it remains to be seen whether the government will take more stringent steps to ensure compliance with the airfare caps. The Ministry of Civil Aviation may need to adopt more robust monitoring and enforcement practices to guarantee that airlines adhere to the regulations, particularly during high-demand periods.

While the government’s efforts to curb soaring flight prices have been commendable, the survey results indicate that more needs to be done to ensure that passengers are not unfairly charged. As the industry grapples with the challenges of returning to pre-pandemic capacity, it will be important for regulators and airlines to work together to restore confidence in the pricing system.

Conclusion

The government-imposed airfare caps were designed to address rising ticket prices and alleviate the financial burden on domestic passengers during a peak travel period. However, as evidenced by LocalCircles’ survey, the implementation of these caps has faced significant challenges. With 59% of respondents reporting instances of non-compliance, it is clear that the fare cap initiative has not been fully effective in curbing excessive pricing. The situation raises questions about the ability of the Ministry of Civil Aviation to enforce such measures effectively, particularly during the busy holiday travel season. As the year-end travel rush continues, both passengers and airlines will be closely watching how the government handles this critical issue.

Source: Business Standard