NEW DELHI: The government has decided to remove the cap on airfares it had imposed during the Covid pandemic restrictions and from September, all airlines will be free to decide what they want to charge from their passengers.
“The decision to remove airfare caps has been taken after a careful analysis of daily demand and prices of air turbine fuel. Stabilisation has set in and we are certain that the sector is poised for growth in domestic traffic in the near future,” tweeted civil aviation minister Jyotiraditya Scindia.
The government had in 2020 regulated airfares by imposing a minimum and maximum band based on the flight duration to prevent ticket prices from spiking due to high demand arising from an easing of restrictions on air travel. Though the airlines had been reporting losses steadily, they were at least getting the volume of traffic.