Festive Season Airfares: Government Rules Out Cap, Advises Airlines to Keep Prices Reasonable

Festive Season Airfares are unlikely to face a government-imposed price cap this year, with Civil Aviation Minister K Rammohan Naidu saying airlines will instead be advised to keep ticket prices at reasonable levels during the upcoming festive period.

Speaking to reporters on Tuesday on the sidelines of the signing of agreements for the next phase of the UDAN regional connectivity scheme, Naidu said the government regularly engages with airlines over airfare-related concerns, particularly during festivals and other periods of high travel demand.

The minister's comments come at a time when aviation companies are facing higher operating costs, with Aviation Turbine Fuel (ATF) prices being affected by the ongoing West Asia crisis. Fuel is one of the biggest components of an airline's operating expenses, making changes in ATF prices an important factor in airfare calculations.

No Airfare Cap During Festive Season

The government has ruled out imposing a formal cap on Festive Season Airfares. Instead, the Civil Aviation Ministry plans to continue discussions with airlines and encourage them to ensure that ticket prices remain reasonable for passengers.

Naidu said the government has followed a similar approach during previous festivals and major events.

According to him, officials maintain regular communication with airlines and highlight the need to keep fares affordable for people travelling during important occasions.

The minister stressed that passengers should be able to benefit from reasonable pricing, particularly when travel demand rises significantly during the festive season.

The government's approach therefore focuses on engagement with airlines rather than introducing a specific maximum fare limit.

Airlines Advised to Keep Ticket Prices Reasonable
During periods of high demand, airfares can change depending on several factors, including passenger demand, available capacity, competition, route conditions and booking patterns.

The government has previously asked airlines to maintain reasonable fares during festival periods. In October 2025, the Ministry of Civil Aviation also said airlines had been sensitised to keep airfares reasonable across sectors during the festive season, while additional capacity was deployed on high-traffic routes.

For the upcoming festive season, the government is again expected to engage with airlines to address concerns surrounding higher ticket prices.

West Asia Crisis Puts Pressure on Airfares

Naidu also pointed to the ongoing crisis in West Asia as an important factor behind rising aviation costs.