The Aviation Ministry has paused its plan to make airlines offer 60% of seats for free selection. The decision was conveyed to the Directorate General of Civil Aviation on Thursday after carriers raised raised concerns about the impact on their revenue and ticket pricing. The decision also comes amid a widening war in the Middle East that sent jet fuel prices and insurance costs skyrocketing — while forcing airlines to run fewer flights and take longer detours.

“The matter has been reviewed in light of representations received from the Federation of Indian Airlines and Akasa Air, highlighting operational and commercial implications of the above provision, including its potential impact on fare structures and consistency with the prevailing deregulated tariff regime…It has been decided that the provision relating to offering at least 60% of seats free of charge shall be kept in abeyance till further orders,” the Civil Aviation Ministry wrote in a letter to the DGCA.

Indian carriers are presently required to make 20% of seats available for free bookings while the rest are paid. Airlines typically charge anywhere between Rs 200 to Rs 2,100 for choosing seats — depending on various factors including front rows and extra leg room. The move to allocate a minimum of 60% of seats for selection on any flight came against the backdrop of rising complaints that airlines were levying high charges for various services.

Airlines push back, warn of airfare hikes

The Aviation Ministry had issued orders last month mandating airlines to allocate at least 60% of seats on any flight for cost-free selection to ensure fair access for passengers. A DGCA official had told PTI earlier this week that the circular was slated for implementation starting April 20.

Indian airlines have raised vehement objections to the decision — warning they would be forced to hike airfares in order to recover lost revenues. The Federation of Indian Airlines (which represents IndiGo, Air India and SpiceJet) had written a letter to the Aviation Ministry on March 20 urging the government to take steps for withdrawal of the decision.

The government has now indicated it will undertake a comprehensive examination of the issue before making a decision.

Flight prices skyrocket

The US-Israeli war against Iran has triggered a wave of airspace closures and a sharp spike in fuel prices — prompting most Indian airlines to introduce a surcharge last month. The charges were revised during the subsequent weeks of war and currently range from Rs 199 to Rs 18,000 depending on the route.

Jet fuel prices also crossed the Rs 2 lakh per lakh per kilolitre mark for the first time on Wednesday. Oil companies had subsequently opted for a calibrated approach and passed only a partial and staggered increase of 25% (Rs 15 per litre) to airlines for domestic operations. Foreign airlines and Indian carriers operating international routes will pay market rates.

The government also removed a fare cap of Rs 18,000 for domestic flights on March 21. The temporary measure had been introduced in December 2025 to stop airlines from overcharging passengers amid a massive wave of flight cancellations by IndiGo.

Airspace closures over many Middle Eastern nations have forced planes into longer, less efficient routes that require additional fuel and flight crew. Indian airlines also contend with a long-standing closure of Pakistani airspace that is now forcing them to take a massive ‘u-turn for destinations in Europe and North America. Longer flights also require additional catering and higher aircraft maintenance.