NEW DELHI: The average domestic air fare in India has shot up by approximately 20.5% across 72 domestic sectors, the Rajya Sabha was informed on Monday. Sharing data compiled and shared by the Directorate General of Civil Aviation, the Minister of State for Civil Aviation Murlidhar Mohol said this takes into account the period from March 2025 to June 2026,
Mohol had furnished his written response to a query from MP Ranjeet Rajan who sought details of fare increase for flyers as well as the operational costs of airlines since March 2025 to date. This was in light of air space restrictions and route diversions effected since then. He also sought to know the measures taken by the government to reduce both as well as Aviation Turbine Fuel (ATF) rates for the last five years.
Elaborating on the reasons for the 20.5% increase in fare based on data shared by the Directorate General of Civil Aviation (DGCA), the Minister said, “Airlines operating costs are dynamic in nature and the individual component varies due to multiple factors such as the cost of ATF in international markets, foreign exchange rates, excise duties, lease rentals and Value Added Tax.
“ATF alone accounts for 35% to 40% of total operating expenses of airlines,” the Minister said.
Mohol said that the Centre was taking proactive steps to make air travel more affordable. The enactment of the Protection of Interests in Aircraft Objects 2025 to lower interest rates and lease route rentals was among the key steps taken, he said. “The rationalisation of the Central Excise Duty & GST on Maintenance, Repair and Overhaul components and contracts, and the reduction of high VAT on ATF by requesting States/UTs are among other measures,” he said.
In order to enhance the transparency in airfare, the DGCA has set-up Tariff Monitoring Unit (TMU) that monitors airfares on selected 78 routes on a random basis by using airlines websites on monthly basis to ensure that the airlines do not charge airfares outside the range declared by them, the minister’s response said.
Among the measures taken by the government to support the aviation sector was a one-time budgetary support of a maximum of Rs 10,000 crores to Oil Marketing companies to provide ATF stabilisation support to scheduled Indian airlines due to exceptional fuel price volatility on account of the West Asia crisis. “For domestic operations, ATF prices were capped at a maximum increase of 25% over the 1st March, 2026 base price, effective from 1st April 2026 for the months of April and May 2026,” the Minister added.
