Airfare Cap: The aviation industry in India is facing new cost pressures after oil companies raised the price of premium petrol by as much as ₹2.35 per liter. The rise is in line with global crude oil trends caused by tensions in the Middle East, even though regular petrol prices haven’t changed.
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Airlines are more worried about aviation turbine fuel (ATF), which makes up almost 40% of their operating costs. As fuel prices rise, airlines have no choice but to raise fares to cover the costs.
Airfare Caps Have Been Officially Taken Away
The Ministry of Civil Aviation has said that the caps on domestic airfare will be lifted on March 23, 2026. These caps were put in place after the IndiGo operational crisis in December 2025 to stop sudden fare increases.
Officials say the market has stabilized, which means airlines can go back to dynamic pricing. However, the government has told carriers to be open and honest and not charge too much.
Airlines Start Charging Extra Fees
Air India and Akasa Air, two big airlines, have already added fuel surcharges. Prices for domestic tickets have gone up slowly, but prices for international long-haul routes have gone up much more quickly.
Experts in the field think that other airlines, like IndiGo, will soon do the same. Starting in April, ticket prices will probably go up to reflect the full effect of rising ATF prices.
What Travellers Should Expect
Domestic airfares could go up by 10% to 30% because there are no longer fare caps, and prices are going up.
Passengers should book their tickets early, compare prices on different platforms, and look out for hidden fees. Competition between airlines may keep prices from going up too much, but the fact that fuel prices are still very unstable around the world could keep ticket prices high for a while.
