IndiGo chaos: Air India says domestic fares capped to prevent price spike since Dec 4

Following a sharp rise in airfares amid widespread IndiGo flight cancellations, the Indian government has stepped in to curb further hikes, implementing a cap on airfares for non-stop domestic flights. The intervention comes after reports of inflated prices on last-minute bookings, particularly for flights with one or more stopovers.

Air India responded to the situation with a post on X (formerly Twitter), stating that since December 4, it has proactively capped economy class fares on direct domestic flights to prevent price gouging. The airline emphasized that this action was taken to avoid the usual market-driven surge pricing during times of high demand.

"We are aware of screenshots circulating online showing inflated prices for one-stop or two-stop flights, as well as combinations of economy and premium cabins taken from third-party platforms," Air India clarified. "While it is not technically feasible to control every fare permutation, we are actively engaging with these platforms to ensure better oversight."

Air India also assured passengers that it is working to increase flight capacity in response to the disruptions and delays, aiming to help travelers and their luggage reach their destinations as efficiently as possible.

Ram Mohan Naidu Kinjarapu, Union Minister of Civil Aviation, in a post on X wrote, "In order to protect passengers from any form of opportunistic pricing, the Ministry has invoked its regulatory powers to ensure fair and reasonable fares across all affected routes. The Ministry will continue to closely monitor fare levels through real-time data and active coordination with airlines and online travel platforms. Any deviation from the prescribed norms will attract immediate corrective action in the larger public interest."

With growing concerns over price hikes and flight cancellations, the government’s involvement in regulating airfares is seen as a necessary step to ensure fair travel costs and improve reliability for passengers.

The Ministry of Civil Aviation has issued a strict directive to IndiGo, ordering the airline to clear all pending passenger refunds without any further delay. According to the ministry, every refund related to cancelled or disrupted flights must be completely processed by 8:00 PM on December 7, 2025.

In addition, airlines have been barred from charging rescheduling fees for passengers whose travel plans were affected, ensuring that travellers are not penalised for operational disruptions. Officials have made it clear that any lapse, delay, or partial compliance will trigger immediate regulatory action.