Air India and Air India Express have clarified that they have capped economy class fares on all non-stop domestic flights since December 4, 2025.
The move was taken to prevent fare hikes that usually occur through revenue management systems when demand increases suddenly, an official statement said.
The airlines said they were aware of screenshots circulating online that showed very high last-minute fares for journeys involving one-stop or two-stop routes, or combinations of economy, premium economy and business class. They explained that it is not technically possible to cap every such route or mixed-class itinerary, especially those displayed on third-party booking platforms. However, the airlines confirmed they are engaging with these platforms to ensure better monitoring and oversight.
A spokesperson said that both Air India and Air India Express are working to add more capacity so that the travellers and their baggage can reach their destinations as quickly as possible.
“Air India & Air India Express clarify that, since 4 December, economy class airfares on non-stop domestic flights have been proactively capped to prevent the usual demand-and-supply mechanism being applied by revenue management systems. We are aware of screenshots of last-minute itineraries with one-stop or two-stop flights or a combination of economy and premium economy or business cabins taken from third party platforms. It is not technically possible to cap all such permutations, but we are engaging such platforms to exercise oversight. Air India and Air India Express are seeking to add capacity to help travellers and their baggage reach their destinations as quickly as possible,” an Air India spokesperson said.
Meanwhile, with the IndiGo’s ongoing flight disruptions affecting thousands of travellers, the civil aviation ministry on Saturday ordered the airline to complete all ticket refunds for cancelled flights by Sunday evening. The ministry also directed IndiGo to ensure that any baggage separated from passengers is traced and delivered within the next 48 hours, reported the PTI.
This comes a day after IndiGo, the country’s largest airline, cancelled more than 1,000 flights, marking the fifth consecutive day of widespread disruptions. The ministry warned that any delay or failure to process refunds would lead to immediate regulatory action.
According to the ministry’s statement, refunds for all cancelled or disrupted flights must be completed by 8 pm on Sunday.
Airlines have also been instructed not to charge rescheduling fees for passengers whose travel plans were affected.
More than 400 flights were cancelled across various airports on Saturday alone.
IndiGo has been told to create dedicated passenger support and refund facilitation cells. These teams must proactively contact affected passengers to issue refunds and arrange alternative travel options, without requiring repeated follow-ups. The ministry added that the automatic refund system will remain active until operations return to normal, as per the PTI.
Additionally, the airline must ensure that all misplaced or delayed baggage is located and returned to passengers within 48 hours.
(with PTI inputs)
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