SRINAGAR: The Ministry of Civil Aviation has removed the upper and lower limits on domestic airfares after three months of restrictions, allowing airlines to determine ticket prices based on market demand.
The fare caps had been introduced in the wake of disruptions following the Iran-Israel conflict to prevent excessive pricing. Announcing the decision, Civil Aviation Minister Ram Mohan Naidu said the move was taken in view of evolving aviation fuel costs and improving market conditions.
With the removal of caps, airlines may adjust fares more freely, potentially leading to higher ticket prices during peak travel periods such as holidays and festivals.
The government said the decision aims to support the financial health of airlines and encourage fair competition. Major carriers, including Air India, IndiGo, and Akasa Air, have welcomed the move, though concerns remain that fare hikes could impact passengers.
