Air India enforces new ticket price limits after govt directive; passengers get refunds for excess fares amid IndiGo flight cancellations.

The Air India airline announced on Monday that it has initiated the implementation of new fare structures in accordance with a directive from the government requiring all airlines to oversee their flight ticket pricing. The government directive was issued following its observation of airlines imposing exorbitant fares for flights amidst the widespread cancellation of numerous IndiGo flights over recent days.

In a statement issued after midnight, Air India announced that although Air India Express has finalized the implementation of revised fares across its systems, Air India will also enforce the fare limits over the coming hours.

“As the process depends on third-party system integrations, a phased implementation is necessary to guarantee precision and stability while avoiding disruption to guest reservations,” the statement read.

Not only has the airline limited its flight ticket prices, but it has also announced that passengers who have already booked Air India flights in Economy Class during the transition period at prices exceeding the prescribed limits are eligible for a refund of the difference.

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IndiGo Airlines has been experiencing flight disruptions for the past six days, with cancellations exceeding 1,000 on Friday. As stranded passengers hurried to secure alternative flights, they observed a significant increase in airfares charged by other airlines, such as Akasa Air, Air India, and SpiceJet.

Amid rising airfares exacerbating passenger concerns, the Civil Aviation Ministry exercised its regulatory authority by issuing an official directive to all airlines to oversee airfare pricing.

These limits shall remain in effect until the situation has been entirely stabilized. The purpose of this directive is to uphold pricing discipline within the market, prevent any exploitation of passengers in distress, and ensure that citizens who require urgent travel—including senior citizens, students, and patients—are not faced with financial hardship during this period, the ministry stated in a press release on Saturday.

Meanwhile, IndiGo’s operations are gradually stabilizing as the number of cancellations decreased on Sunday. Furthermore, in accordance with government directives, the airline has issued refunds exceeding ₹610 crore to all affected passengers.