Business EconomyPosted at: Sep 22 2026 6:33PM


No airfare cap for festive season, govt asks airlines to keep fares reasonable

New Delhi, Sep 22 (UNI) The government is not planning to impose a cap on airfares during the upcoming festive season, Civil Aviation Minister K Rammohan Naidu said on Tuesday. Instead, the Centre will continue to engage with airlines and advise them to keep ticket prices at reasonable levels during the period of high travel demand.
Speaking to reporters on the sidelines of the signing of agreements for the next phase of the regional connectivity scheme UDAN, Naidu said the government has previously addressed concerns over high fares during festivals and major events through discussions with airlines.
"Government maintains regular communication with airlines and will again take up the issue ahead of the festive travel period. The objective, he said, is to ensure that passengers travelling during important occasions are not faced with unreasonable ticket prices," he said.
Responding to a question on whether the government would introduce a formal airfare ceiling, Naidu said there was currently no plan to impose such a cap. Instead, airlines would be encouraged to maintain fares at reasonable levels.
Naidu also linked the pressure on airfares to the ongoing crisis in West Asia, which has pushed up the cost of aviation turbine fuel (ATF).
"The current increase in operating costs was not necessarily linked to the festive season, but was also a result of the wider geopolitical situation," he said.
"Fuel is one of the largest expenses for airlines, and higher ATF prices can have a direct impact on the cost of air travel. ATF accounts for around 40-43 per cent of airfare, making ticket prices particularly sensitive to movements in fuel costs," he added.
With the festive season expected to generate stronger passenger demand, the government is therefore relying on engagement with airlines rather than a regulatory price cap to address concerns over airfare increases.
Naidu's comments come as the Centre prepares to expand the regional air connectivity network under the next phase of the UDAN scheme, while the aviation sector continues to navigate elevated fuel costs and geopolitical uncertainties.
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Tags: #No airfare cap for festive season# govt asks airlines to keep fares reasonable
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