Air India has begun updating its economy ticket prices following the Ministry of Civil Aviation’s December 6 directive to cap base fares, issued after last-minute domestic prices surged sharply in the wake of IndiGo’s operational crisis.

According to an official statement, Air India Express has already fully implemented the revised pricing across its booking platforms, while Air India is introducing the capped fares in phases due to third-party system dependencies.

Timeline of the move

The airline expects the process to be completed within hours. Passengers who booked tickets above the prescribed fare ceiling during the transition period will receive refunds for the difference.

Why did govt intervene?

The government intervened on December 6 after IndiGo cancelled nearly 850 flights on Saturday across major hubs such as Delhi, Mumbai, and Bengaluru, triggering a spike in demand and fares.

IndiGo has said to processed refunds of Rs 610 crore so far following the Ministry’s instructions. Indigo has also been barred from from charging rescheduling fees for affected passengers.

To support stranded travellers, Air India and Air India Express are evaluating additional flights on high-demand routes, offering a one-time waiver on change and cancellation fees, and may upgrade some economy passengers subject to seat availability.