Festive Airfares Soar: Government Rules Out Fare Caps as Supreme Court Hears Plea
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By SANJAY SINGH
The government is finalising new airfare rules while asking airlines to avoid sharp fare hikes during peak demand; a Supreme Court petition seeks an independent aviation regulator.
New Delhi, October 21, 2026 — Airfares have surged again during the festive season, putting air travel beyond the reach of many ordinary passengers. The issue has reached the Supreme Court even as the Centre maintains that it has no plans to regulate or cap fares in the free market in which Indian airlines operate.
The Ministry of Civil Aviation said last week that it would not impose fare caps under the new airfare policy being finalised. However, the government would keep a close watch on airlines to prevent sharp fare increases in “exceptional and extraordinary circumstances” when demand rises on particular routes.
Under the proposed policy, airlines will be required to determine fares based on their operating costs and periodically submit fare ranges for different routes to the Directorate General of Civil Aviation (DGCA). The framework is intended to establish maximum fare limits for the routes concerned.
The Centre has informed the Supreme Court that administrative approval has been granted to the rules under the Bharatiya Vayuyan Adhiniyam, 2024, and that they are likely to be published within two weeks.
The petition, filed by activist S. Laxminarayanan, seeks an independent regulator to ensure transparency and protect passengers in the civil aviation sector.
Civil Aviation Minister K. Rammohan Naidu said last month that the government would not cap airfares during the festive season. On October 15, he said sharp changes in aviation turbine fuel (ATF) prices were making it difficult to keep fares affordable.
Instead of imposing a cap, the Ministry of Civil Aviation has asked airlines to keep fares reasonable during periods of peak demand.
Higher fuel costs, however, may explain only part of the increase. ATF accounts for around 55–60 per cent of an airline’s operating costs and has risen by about 13 per cent this month.
Yet, a survey has found that a majority of travellers are paying 50 per cent to more than 100 per cent higher fares than in 2025. One-way fares on the Patna route have reportedly risen to more than three times their earlier levels.
With festive demand putting further pressure on ticket prices, passengers face the prospect of paying substantially more to travel even as the government prepares a new framework for airfare transparency and oversight.
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