Air India Introduces New Fares Following Government Price Cap Order Amid IndiGo Crisis

Air India has begun implementing revised ticket prices after the government directed all airlines to monitor fares in the wake of massive IndiGo cancellations.

The move comes as passengers faced unusually high ticket prices across several carriers while trying to rebook flights during the disruption.

Air India Begins Phased Rollout of Revised Fares

In a statement released shortly after midnight, Air India said Air India Express had already completed the application of revised fares across its systems, while Air India would finish the process within a few hours.

"As the process involves third party system dependencies, a phased rollout is required to ensure accuracy and stability without disrupting guest bookings," the airline said.

Air India also announced that customers who purchased Economy Class tickets at prices higher than the prescribed caps during the transition period would receive refunds for the difference.

Government Steps In After Heavy Fare Surge

The IndiGo crisis, now in its sixth day, has caused more than one thousand cancellations as of Friday. With travellers scrambling for alternative flights, fares on Akasa Air, Air India and SpiceJet surged sharply.

In response, the civil aviation ministry invoked its regulatory powers on Saturday, issuing a directive to all carriers asking them to monitor and control airfares.

"These caps will remain in force until the situation fully stabilises. The objective of this directive is to maintain pricing discipline in the market, prevent any exploitation of passengers in distress, and ensure that citizens who urgently need to travel, including senior citizens, students, and patients, are not subjected to financial hardship during this period," the ministry said.

IndiGo Operations Showing Signs of Improvement

IndiGo operations showed early signs of recovery on Sunday, with the number of cancellations declining. The airline has also refunded more than six hundred ten crore rupees to affected passengers, as directed by the government.

Refund Relief and Market Stabilisation Efforts Continue

As airlines adjust their fare structures to comply with the temporary caps, authorities expect pricing to stabilise gradually. Air India's decision to offer refunds for excess fares aims to provide immediate relief to passengers who booked tickets during the volatile period.