October 21, 2026

Government Won’t Directly Control Airline Fares, New Rules May Allow Price Caps During Emergencies

Airline passengers at an airport as the government plans new rules for airfares in India.

National/Alive News: The central government will not directly regulate airline ticket prices under the proposed new rules. Airlines will continue to set fares based on demand and seat availability. However, the government may fix fare limits during emergencies and natural disasters to protect passengers from excessive charges.

Under the proposed rules, airlines will be required to submit their fare details to the Directorate General of Civil Aviation (DGCA) one month in advance and display the information on their websites. The aviation regulator will monitor ticket prices and check whether airlines are following the applicable rules.

The government had earlier informed the Supreme Court that new rules would be introduced within two weeks to prevent airlines from charging excessive fares. The court was hearing a petition filed by social activist S. Lakshminarayan, which sought action against high ticket prices and hidden charges during festivals and holidays.

Airfares Rise During the Festive Season

Airline ticket prices have increased during the current festive season compared with last year. Rising aviation turbine fuel (ATF) prices and limited flight availability have added to the pressure on fares. Aviation Minister Ram Mohan Naidu has said that controlling ticket prices has become challenging due to the increase in fuel costs. The government is discussing the issue with airlines and oil companies.

Air India and IndiGo Increase Fares

Air India and IndiGo have recently increased fares following a rise in aviation turbine fuel prices. Air India introduced an additional fuel charge from October 9, with charges of up to ₹1,200 on domestic flights and ₹17,800 on international flights. The revised fuel charges also apply to Air India Express.

IndiGo, the country’s largest airline, also increased fares from October 6. Aviation turbine fuel is one of the biggest expenses for airlines, accounting for around 30% to 40% of their total operating costs.