The Indian government has withdrawn the temporary domestic airfare cap, citing stabilisation of the situation that prompted the controls. However, the ministry has warned airlines that excessive pricing will invite re-imposition of controls.
The decision comes amid soaring fuel prices due to the US-Iran war, which has sent fuel prices skyrocketing and choked several international flight routes.
The Federation of Indian Airlines, representing IndiGo, Air India, and SpiceJet, had warned of route withdrawals and delayed fleet and network expansions unless the caps were revoked.
The caps, ranging from ₹7,500 to ₹18,000 on economy routes depending on flight distance, will be withdrawn effective March 23.
Airlines have been instructed to ensure that fares remain reasonable, transparent, and commensurate with market conditions, and that passenger interests are not adversely impacted.
