NEW DELHI (March 22): India will revoke temporary fare caps it had imposed on domestic air tickets in December, according to a government order reviewed by Reuters, a move to ease the financial burden on airlines facing higher costs from disruptions due to the Iran war. The order, which was dated Friday and reviewed by Reuters on Saturday, has not been made public. Though airlines have not revealed the extent of losses suffered, HSBC analysts have said a US$1 per barrel change in fuel prices could impact IndiGo's full-year fuel bill by about three billion rupees. Under the caps, a one-way fare for a journey up to 500 kilometres cannot be more than 7,500 rupees (US$80.07 or RM315). The government's order instructs airlines to ensure fares remain "reasonable, transparent and commensurate with market conditions, and that passenger interests are not adversely impacted."

Source: The Edge Markets March 22, 2026 00:50 UTC