India lifts airfare caps
India removed temporary domestic airfare caps effective March 23, and analysts expect fares to rise — airlines may hike tickets by up to Rs1,500 as fuel costs climb amid Middle East tensions (wionews.com). That domestic pricing freedom is likely to ripple into international markets, so expect more volatility in routes to and from India (hindustantimes.com).
The emergency caps imposed on December 6, 2025 set one‑way economy ceilings by distance: up to 500 km ₹7,500; 500–1,000 km ₹12,000; 1,000–1,500 km ₹15,000; and above 1,500 km ₹18,000. (hindustantimes.com) Those limits were triggered after IndiGo’s scheduling collapse, which saw more than 1,000 cancellations on December 5 and thousands of cancellations across the first week of December that stranded large numbers of passengers. (thehindu.com) The civil aviation ministry’s removal order says operations and capacity have stabilised and tasks the Directorate General of Civil Aviation with ongoing fare monitoring while DGCA has also issued a summer flight schedule for carriers. (businessworld.in) Airlines have begun passing higher fuel bills to customers: Air India rolled out phased fuel surcharges from March 12, IndiGo started a fuel charge on new bookings from March 14 ranging ₹425–₹2,300 per sector, and Akasa announced surcharges up to ₹1,300. (news18.com) IndiGo’s dominant position — roughly 63–65% of India’s domestic market through 2025 — amplified the impact of its disruption on capacity and competitor load factors, with DGCA data showing a notable month‑on‑month dip in IndiGo’s share in December. (economictimes.indiatimes.com) State oil marketing companies raised ATF rates on March 1 (an increase quoted around Rs5,215 per kilolitre), and the Civil Aviation Minister has said the passenger‑facing effect of higher ATF prices is likely to be visible from April 1. (zeebiz.com)
