Centre skips festive airfare cap, asks airlines to keep fares reasonable
The government will not impose a festive-season ceiling on airfares, instead urging carriers including IndiGo and Air India to moderate pricing as higher jet-fuel costs pressure ticket rates. A proposed Rs 10,000 crore fund aims to stabilise ATF prices for scheduled airlines over three years.
What happened
Government of India · The Centre will not cap festive-season airfares but will urge airlines to maintain reasonable prices. Higher ATF costs linked to the West
Key facts
- ATF accounts for 40-43% of airfares
- Rs 10,000 crore price stabilisation fund
- IndiGo fuel surcharge: Rs 275-Rs 950
- Delhi ATF peak: Rs 2.07 lakh per kilolitre
- ATF prices to be stabilised for 3 years
Why this matters
Airline and travel-platform deal teams should monitor ATF-fund design and fare-policy scrutiny, as lower fuel volatility could improve the economics of capacity, loyalty, and distribution partnerships.