Domestic airfares set to rise as government lifts fare cap from March 23 | DGCA

Domestic airfares are set to rise as the Civil Aviation Ministry lifts the temporary fare cap from March 23. The cap was introduced in December 2025 following widespread IndiGo flight cancellations.

The government says the sector has stabilised, with operations returning to normal. Airlines had also raised fares recently due to rising aviation fuel costs and longer international routes amid the West Asia conflict.

While lifting the cap, authorities warned airlines against excessive fare hikes during peak demand. The government also said fare controls could return if needed, even as airlines push for easing seat selection fee restrictions.