In response to the travel chaos triggered across the nation by the multi‑day cancellation spree at IndiGo, Air India has started a phased rollout of new, government‑mandated fare caps along with one‑time waivers on rescheduling and cancellation fees to benefit domestic travellers caught in the disruption.
On 6 December 2025, the MoCA intervened and asked all domestic carriers to cap the prices of economy‑class tickets to guard against opportunistic pricing after the ticket rates jumped following steep demand and limited supply.
Under this revised sliding fare structure, economy fares must not exceed Rs. 7,500 for flights up to 500 km; Rs. 12,000 for 500–1,000 km; Rs. 15,000 for 1,000–1,500 km; and Rs. 18,000 for longer sectors, excluding taxes and certain fees.
Air India Group announced, through an official statement on 8 December, that its low-cost subsidiary, Air India Express, had completed the implementation of revised fare caps, while Air India is rolling them out progressively across its reservation systems to avoid disruption caused by dependencies on third-party platforms.
Importantly, those passengers who had booked Economy‑class flights during the transition period at fares above the caps are entitled to a refund of the fare difference. In addition to the fare cap, Air India and Air India Express have issued a one‑time waiver of change and cancellation fees for eligible domestic bookings.
Customers who booked on or before 4 December 2025 for travel scheduled up to 15 December can reschedule within the ticket validity period or cancel their flights for a full refund, provided they request the change by 8 December 2025. Any fare difference at the time of rescheduling will apply.
The move comes as fallout from what many are calling the worst disruption in recent memory at IndiGo, with hundreds of flights cancelled daily over several days, which triggered a sharp spike in fares and widespread passenger distress.
By proactively implementing fare caps and waivers, Air India aims to immediately alleviate pressure on passengers seeking alternatives amid turbulence in India's domestic aviation network.