Domestic Flights Fare: Fare caps on domestic flights to be discontinued from August 31 | India Business News

“Airlines will be able to offer lower pricing to customers on sectors/routes where flight loads are comparatively lower. Certain flight routes for instance metros like Mumbai, Delhi and Bengaluru are likely to witness surge in pricing,” said Indiver Rastogi of Thomas Cook (India) & SOTC.
Financially weak ones struggling to survive will now become even more vulnerable to fare wars being unleashed by stronger players amid a sharp escalation in operating cost due to high jet fuel prices and a weak rupee.
Fare bands were introduced on May 25, 2020, among the several conditions under which scheduled domestic flights were allowed to resume from then after a two-month suspension Covid-time suspension. These bands, as of now, are effective for tickets purchased for travel within 15 days.
Union aviation minister J M Scindia Tweeted Wednesday: “The decision to remove air fare caps has been taken after 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.”

Airlines had for the past few months been demanding an upward revision of fare caps as jet fuel prices have almost tripled in the last two years.
Given the disproportionate increase in jet fuel prices over past few months — as politicly sensitive petrol and diesel have been left untouched — and weakening of rupee, airlines have for months been seeking relief on excise front for jet fuel.
Since that relief from the Centre is proving to be elusive, removing fare bands and allowing airlines to charge airfares reflecting higher operating cost was the one way to avoid some airlines getting grounded after running out of cash.
“After review of the current status of scheduled domestic operations viz-a-viz passenger demand for air travel, it has been decided to remove fare bands notified from time to time regarding the airfares with effect from August 31, 2022. Airlines/airport operators shall, however, ensure that the guidelines to contain the spread of Covid-19 are strictly adhered to and Covid-appropriate behaviour is strictly enforced by them during the travel,” the aviation ministry Tweeted Wednesday.
The DGCA has accordingly advised all airlines. “We have sent a mail to all airlines regarding the discontinuation of domestic fare band from August 31, 2022,” said an official.