The IATA Agents Association of India (IAAI) has urged the Centre to continue with the present domestic airfare caps so as to promote tourism and strengthen regional air connectivity.
Despite India being the world’s fastest-growing aviation market, domestic airfares have become highly volatile and frequently unaffordable due to aggressive dynamic pricing. Such sudden fare spikes directly harm tourism, disrupt family and business travel and weaken regional connectivity, IAAI said in a representation to the Union Ministers of Civil Aviation and Tourism.
Highlighting India’s vast and underutilised domestic tourism potential, IAAI said that affordable and predictable airfares are critical to connect Tier-2, Tier-3 and remote destinations in line with the UDAN vision. The erratic fares—often exceeding comparable international routes—undermine States investments in tourism infrastructure, erode passenger confidence and suppress demand.
The Ministry’s temporary fare cap of ₹7,500 to ₹18,000 was timely and effective. The measure curbed exploitative surge pricing, protected passengers during emergencies and stabilised the domestic aviation market, the association said.
IAAI urged the government to continue the existing domestic airfare cap as a permanent and legally enforceable ceiling, with no seasonal, event-based or demand-driven pricing permitted to breach the prescribed limit under any circumstances.
Biji Eapen, national president, and Aruna Shetty, general secretary, IAAI said over 5.3 lakh passengers are travelling daily across 164 airports and domestic traffic projected to reach 40 crore by 2029. Affordable, predictable, and transparent airfares are essential for inclusive aviation growth and domestic tourism. Such measures would protect passengers, strengthen regional connectivity, promote fair competition, and ensure the sustainable growth of Indian aviation.
Published on February 23, 2026