Air India rolls out new fares after govt order on price caps amid IndiGo crisis

By Admin

08 Dec, 2025

India’s aviation sector has entered a turbulent phase over the past week, with the IndiGo crisis triggering widespread flight cancellations, passenger chaos, and an unexpected spike in airfares across major airlines. As the disruptions continued, the government stepped in, issuing a strict directive to all airlines to monitor ticket prices and prevent opportunistic pricing. Following the order, Air India confirmed that it has begun rolling out revised fares across its network to restore pricing stability.

Phased Implementation of Air India’s Revised Fares

In a statement issued shortly after midnight on Monday, Air India announced that it has initiated the process of applying new fare caps in compliance with the government’s directive. According to the airline, Air India Express has already completed the implementation, while Air India is executing the changes in a phased manner.

The airline explained that the rollout involves third-party system dependencies, making gradual implementation necessary to ensure system accuracy and avoid disrupting guest bookings. Air India emphasised that its team is working swiftly to complete the fare revisions across all platforms within a few hours.

Refunds for Passengers Who Paid Above the Price Cap

In a passenger-friendly move, Air India also announced refund eligibility for travellers who booked Economy Class tickets during the transition period at fares exceeding the prescribed price caps. These passengers can claim the difference amount, ensuring transparency and fairness amid a volatile fare environment.

IndiGo Crisis Triggers Fare Surge Across Airlines

The backdrop to the government’s intervention has been the ongoing IndiGo crisis. Over the past six days, IndiGo has experienced severe operational disruptions, with cancellations crossing 1,000 flights on Friday alone. As thousands of stranded passengers scrambled to secure alternate flights, airfares on other carriers   including Akasa Air, Air India, and SpiceJet   surged sharply.

The escalating fares prompted public outcry and concerns of opportunistic pricing, especially at a time when many passengers urgently needed to travel.

Government Steps In With Price Caps

Responding to the situation, the civil aviation ministry invoked its regulatory powers and directed all airlines to impose fare discipline. In its official statement, the ministry said the temporary price caps will remain in force until the situation normalises.

“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 press release stated.

IndiGo Operations Begin to Stabilise

There is some relief on the horizon, as IndiGo operations have started showing signs of recovery. Flight cancellations reduced on Sunday, and the airline confirmed that it has issued refunds worth more than ₹610 crore to affected passengers, as directed by the government.

Conclusion

The coordinated efforts of the government and airlines like Air India underline the importance of passenger protection during aviation crises. As Air India completes its fare cap implementation and IndiGo’s operations gradually stabilise, the industry hopes to restore normalcy and regain passenger confidence. Until then, the temporary fare caps serve as a critical measure to ensure fair travel access for all.