Amid pain for airlines from West Asia war, Govt to remove domestic airfare caps imposed during IndiGo’s December meltdown | Business News
3 min readNew DelhiMar 22, 2026 12:14 AM IST The government has decided to remove temporary airfare caps for domestic flights that were imposed in December during IndiGo’s widespread flight disruptions. The airfare caps removal, effective from March 23 (Monday), comes at a time when Indian airlines are grappling with operational disruptions and cost escalations due to the raging war in West Asia. Airline grouping Federation of Indian Airlines had urged the government to remove the fare caps in view of the stress being faced by Indian carriers as a consequence of the West Asia conflict, it is learnt. The conflict has led to a surge in jet fuel prices, further weakened the rupee against the dollar, and significantly hit Indian airlines’ operations to West Asia and beyond. With airfares skyrocketing due to the widespread disruption in IndiGo’s flight operations in early December, the government has stepped in to regulate non-business class airfares for all airlines by prescribing fare caps between Rs 7,500 and Rs 18,000 per seat depending on the distance flown on domestic …







