Will domestic Flight Ticket Fare come down from august 31 – Government of India has removed the price cap from Airfare after 27 months since corona pandemic. As price caps are no longer available, airlines can charge whatever they see fit for passengers. The airlines may offer discounts on flight ticket prices to attract more travelers.
Previously, airlines could not offer discounts because of the lower and upper price caps on domestic airfare imposed by the government.
Why did the price caps on domestic Flight Ticket Fare remove ?
The price caps were removed under daily demand and prices of air turbine fuel (ATF) and stability and growth in domestic traffic in the near future.
The lower and upper caps on domestic airfares were imposed in May 2020 as air travel resumed after the nationwide Covid-19 lockdown. While the government allowed 100 per cent capacity deployment in October 2021, it continued with the pricing regulation. The lower caps were there to protect the financially weaker airlines and the upper caps to protect passengers from high fares.
For example, airlines currently cannot charge a passenger less than ₹2,900 (excluding GST) and more than ₹8,800 (excluding GST) for domestic flights of less than 40 minutes.
