NE BUSINESS BUREAU
NEW DELHI/MUMBAI, DEC 6
Amid an unprecedented wave of flight cancellations by domestic carrier IndiGo, the Ministry of Civil Aviation on Saturday imposed temporary fare caps across domestic routes to contain surging ticket prices that had reached as high as ₹90,000 on some sectors.
The government has capped base airfares between ₹7,500 and ₹18,000, depending on flight distance. These limits apply to all booking platforms—airline websites, travel agents and online aggregators—and exclude PSF, UDF and taxes. The caps do not apply to business class or UDAN flights.
- Govt fixes temporary fare ceiling of ₹7,500–₹18,000 to curb surge pricing
- Over 1,800 IndiGo cancellations in 48 hours trigger nationwide travel chaos
- Aviation Ministry warns airlines against unusual fare hikes, mandates refunds by sunday 8 pm
- Travel industry bodies back cap; demand long-term policy & better contingency protocols
- Passengers to get automatic refunds, free rescheduling & 48-hour baggage delivery assurance
Mass Cancellations Trigger Price Spike, Passenger Distress
Indian flyers have faced five consecutive days of disruption, with IndiGo cancelling over 1,000 flights on Friday and around 850 on Saturday, creating severe nationwide travel chaos. Many passengers reported misplaced baggage, last-minute flight cancellations and long queues at airports.
The ministry said the fare caps were essential as capacity shortages led to “unreasonable surge in fares across multiple sectors.”
For instance, a SpiceJet one-stop Kolkata–Mumbai economy ticket was listed at ₹90,000, while Air India charged ₹84,485 for Mumbai–Bhubaneswar on December 6.
Industry Voices: ‘Spikes Damage Confidence’
Tourism and hospitality bodies welcomed the fare cap but urged systemic reforms.
Ravi Gosain, President of the Indian Association of Tour Operators, said: “Unpredictable spikes damage consumer confidence and create chaos for tour operators. The cap provides immediate relief, but the real solution lies in better contingency planning, rapid capacity deployment, and transparent fare monitoring.”
Anil Kalsi, Board Member, Federation of Associations in Indian Tourism & Hospitality, noted: “This cap is essential to protect flyer rights. India needs a permanent, clearly defined policy to prevent such price shocks.”
Govt Orders Fast Refunds, No Rescheduling Fees & 48-Hour Baggage Delivery
Taking note of unreasonable surge in fares due to disruptions in flight operations of Indigo, Ministry of Civil Aviation has directed all airlines to maintain strict adherence to prescribed fare caps.
The airlines shall extend maximum possible support to affected passengers,… pic.twitter.com/Sm16ytYG49
— Ram Mohan Naidu Kinjarapu (@RamMNK) December 6, 2025
Ministry of Civil Aviation has directed IndiGo to clear all pending passenger refunds without delay and mandated that the refund process for all cancelled or disrupted flights must be fully completed by 8:00 PM on Sunday, 7 December 2025.
Ministry has directed IndiGo to ensure…
— Ram Mohan Naidu Kinjarapu (@RamMNK) December 6, 2025
Ministry of Civil Aviation has directed IndiGo to clear all pending passenger refunds without delay and complete the process for all cancelled or disrupted flights by 8 PM on 7 December 2025. Airlines have been instructed not to levy rescheduling charges for affected passengers…
— MoCA_GoI (@MoCA_GoI) December 6, 2025
In a stern directive, the ministry ordered IndiGo to:
- Complete all refundsfor cancelled flights by 8 PM Sunday
- Deliver stranded baggage within 48 hours
- Levy no rescheduling fees for affected passengers
- Set up dedicated refund and passenger-support cells
- Keep automatic refunds active until operations stabilise
Any delay or non-compliance will invite immediate regulatory action, it said.
IndiGo stated it is “working determinedly” to restore normalcy and has improved cancellation numbers.
“Cancellations dropped below 850 on Saturday. Our teams are focused on stabilising schedules and supporting customers,” the airline said.
IndiGo added that it is coordinating closely with airports for timely updates via terminals, website and direct notifications.
Fare Caps by Distance (Base Fare Only)
- Up to 500 km:₹7,500
- 500–1,000 km:₹12,000
- 1,000–1,500 km:₹15,000
- Above 1,500 km:₹18,000
A Delhi–Mumbai flight (approx. 1,300 km) will thus have a capped economy base fare of ₹15,000, excluding fees and taxes.
Aviation Ministry: Monitoring in Real Time
The ministry affirmed it is tracking fares through real-time data and collaborating with airlines and major online travel platforms.
“Any deviation from the prescribed norms will attract immediate corrective action in the public interest,” it added.
