Air India, Air India Express cap economy fares as IndiGo disruptions hit travellers

Air India and Air India Express are seeking to add capacity to help travellers and their baggage reach their destinations as quickly as possible.

As IndiGo’s widespread operational disruptions continue to inconvenience thousands of travellers, Air India and Air India Express on Saturday said they have been proactively capping economy-class fares on all non-stop domestic flights since December 4. The move, the airlines said, is aimed at preventing last-minute ticket prices from surging due to dynamic pricing algorithms during the ongoing travel chaos.

The airlines said the move was aimed at ensuring the demand-and-supply-based pricing typically used by automated revenue management systems does not burden travellers during the current surge in domestic travel.

The clarification comes after screenshots of unusually high fares for one-stop or two-stop itineraries circulated widely on social media. The carriers said such higher fares often involve connecting flights or mixed-cabin combinations, including premium economy or business, which fall outside the purview of fare caps.

“It is not technically possible to cap all such permutations, but we are engaging such platforms to exercise oversight,” an Air India spokesperson said, pointing out that many of these fare displays originate from third-party booking platforms.

Air India and Air India Express added that they are working to add more capacity to help travellers, and their baggage, reach their destinations as seamlessly and quickly as possible.

Meanwhile, the civil aviation ministry on Saturday directed the airline to complete all ticket refunds for cancelled flights by Sunday evening and ensure that any baggage separated from passengers is delivered within the next 48 hours.

The directives came a day after IndiGo — the country’s largest airline — cancelled more than 1,000 flights and faced its fifth straight day of disruptions. On Saturday alone, over 400 flights were cancelled across airports.

The ministry warned that any delay or non-compliance in processing refunds would attract immediate regulatory action. All refunds for cancelled or disrupted flights must be completed by 8 pm on Sunday, it said.

Passengers whose travel plans were hit by cancellations should not be charged rescheduling fees, the ministry added.

IndiGo has also been instructed to set up dedicated passenger support and refund facilitation cells. These teams will be responsible for proactively contacting affected travellers and ensuring that refunds or alternate travel arrangements are processed smoothly, without passengers having to follow up repeatedly.

According to the statement, an automatic refund system will remain active until IndiGo’s operations fully stabilise.

The ministry further directed the airline to ensure that all misplaced or delayed baggage resulting from cancellations or schedule disruptions is traced and returned to passengers within 48 hours.