The government on Saturday brought back airfare caps for the first time since the Covid era, reacting to an unprecedented jump in ticket prices triggered by the ongoing IndiGo crisis.
According to the aviation ministry, it has “taken a serious note of unusually high airfares being charged by certain airlines during the ongoing disruption” and has “invoked its regulatory powers to ensure fair and reasonable fares across all affected routes” to “protect passengers from any form of opportunistic pricing.”
Ministry of Civil Aviation has taken serious note of concerns regarding unusually high airfares being charged by certain airlines during the ongoing disruption. In order to protect passengers from any form of opportunistic pricing, the Ministry has invoked its regulatory powers… pic.twitter.com/orXX8Qdqlf
— ANI (@ANI) December 6, 2025
Caps to Stay Until IndiGo Restores Normal Flight Operations
The new limits on ticket pricing will remain in effect until IndiGo returns to its pre-crisis operations — a recovery that is now projected around December 15. To support this process, the government has temporarily paused the new pilot flight duty rules that were expected to enhance flight safety, giving IndiGo room to stabilise its schedule.
Passengers Hit Hard Before Government Acted
For lakhs of passengers, the move has come too late. Earlier this week, IndiGo began cancelling hundreds of flights, a situation that will continue until mid-December. Those who had booked with the airline were forced to cancel and then purchase new tickets on other carriers — including Air India, Air India Express, Akasa Air and SpiceJet — at sharply inflated prices.
One such traveller, Geeta Srivastava (name changed), had booked a Delhi–Udaipur–Delhi journey for ₹11,000. After IndiGo cancelled her return flight, she had no choice but to book another airline.
“I have bought Udaipur-Delhi ticket on another airline for Rs 24,000. Of what use is the govt directive. Throughout this crisis, the aviation ministry has been nothing but a mute spectator. Their statements during the IndiGo crisis bear no resemblance to ground reality at airports,” fumed Srivastava.
Her experience mirrors what thousands of others are facing in this peak travel season.
Why IndiGo Fares Exploded
IndiGo controls nearly 65% of India’s domestic aviation market. Before the crisis, more than five lakh people were flying within the country every day. Now, with IndiGo reducing flights drastically until mid-December, the majority of passengers are left scrambling for seats on the remaining airlines, which together hold only 35% of the market. This severe imbalance between demand and supply has pushed fares to extreme levels.
Government Orders Airlines to Follow New Caps
In its statement, the aviation ministry declared: “An official directive has been issued to all airlines mandating strict adherence to the fare caps that have now been prescribed… The objective of this directive is to maintain pricing discipline in the market, prevent any exploitation of passengers in distress, and ensure that citizens who urgently need to travel including senior citizens, students, and patients are not subjected to financial hardship during this period.” The ministry said it will track fares through real-time data, coordinate with airlines and online travel portals, and take “immediate corrective action” if any airline violates the prescribed limits.
Government Orders Indigo to Refund Passengers Without Delay
The Ministry of Civil Aviation has directed IndiGo to clear all pending passenger refunds without delay. The Ministry has mandated that the refund process for all cancelled or disrupted flights must be fully completed by 8:00 PM on Sunday, 7 December 2025. Airlines have also been instructed not to levy any rescheduling charges for passengers whose travel plans were affected by cancellations. The Ministry has clarified that any delay or non-compliance in refund processing will invite immediate regulatory action.
The Ministry of Civil Aviation has directed IndiGo to clear all pending passenger refunds without delay. The Ministry has mandated that the refund process for all cancelled or disrupted flights must be fully completed by 8:00 PM on Sunday, 7 December 2025. Airlines have also been… pic.twitter.com/e8UKc1Ndc1
— ANI (@ANI) December 6, 2025
IndiGo Gradually Recovering
IndiGo normally operates over 2,200 flights every day. On Friday alone, the airline cancelled more than 1,000 flights. Officials expect these cancellations to decline steadily as IndiGo restores its staffing and scheduling in the coming days.
Note: An airfare cap is a maximum limit on ticket prices that airlines are allowed to charge on specific routes for a temporary period.
Also Read: IndiGo Chaos 2025 vs. Putin’s Pikalyovo Move: Strategic Leverage in Action Across Industries
