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The government has lifted the fare cap on airfares but has warned airlines to keep prices reasonable. This decision was taken amidst rising operational costs driven by tensions in the Middle East.
Govt Lifts Airfare Cap as Flights Stabilise (Image Source: Internet)
New Delhi: The Central Government has removed the price ceiling (fare cap) previously imposed on air tickets. This cap was originally instituted in December when airfares surged abruptly following the cancellation of numerous Indigo flights,reports Dynamite News correspondent.
According to the Ministry of Civil Aviation, conditions have now returned to normalcy. The number of flights has increased, and flight operations have resumed their previous levels. Consequently, the decision was taken to lift the fare cap effective March 23, 2026.
The government has explicitly stated that, despite the removal of the fare cap, airlines must keep their fares "reasonable and transparent." This implies that ticket prices cannot be hiked beyond what is necessary or justified.
This decision comes at a time when the cost of Aviation Turbine Fuel (ATF) has risen due to ongoing tensions in the Middle East. Furthermore, airlines' operational costs have increased as a result of flight route diversions and cancellations.
The government has warned airlines that if ticket prices are hiked without valid justification, the fare cap could be reimposed. This signals that the government remains vigilant and is closely monitoring the situation.
Ticket prices will now be determined by market dynamics, which could potentially lead to higher fares on certain routes. However, the government has provided assurances that the interests of passengers will be safeguarded.
The removal of the fare cap will offer some relief to airlines, but they will remain under the government's strict scrutiny. It now remains to be seen in which direction ticket prices will move in the coming times.
