Bhubaneswar, March 22 -- The Ministry of Civil Aviation will lift temporary domestic airfare caps from March 23, marking a return to market-driven pricing after months of regulation triggered by flight disruptions, sources said.

The caps were introduced in December 2025 following widespread cancellations by IndiGo, which led to a sharp capacity shortage and a surge in ticket prices across major domestic routes. With flight operations now stabilised and capacity largely restored, the government has decided to withdraw the restrictions.

However, the ministry has cautioned airlines against unreasonable pricing and emphasised the need for transparency. It warned that regulatory intervention could be reintroduced if fares spike unjustifiably...