Air India confirmed on Monday that it has begun rolling out new controlled fares. The government had warned airlines to monitor ticket prices. Authorities acted after they saw airlines charging very high rates during IndiaGo’s mass cancellations.

Air India said Air India Express has already applied the revised fares across all systems. At the same time, Air India stated it will complete the same process in the next few hours.

“As the process involves third-party system dependencies, a phased rollout is required to ensure accuracy and stability without disrupting guest bookings,” the statement read.

Passengers will receive refunds

Air India capped its Economy Class fares. It also announced refunds for some passengers. Anyone who paid more than the approved limit during the transition period will get the difference back. The airline said this step will offer relief to travellers who paid higher fares because of limited flight options.

IndiGo disruption triggers sharp rise in prices

IndiGo faced heavy disruptions for six days. On Friday, cancellations crossed 1,000. Passengers rushed to book other flights. As a result, ticket prices rose quickly on Air India, Akasa Air, and SpiceJet. Demand increased. Available seats fell. Fares went up.

Government issues strict warning

The civil aviation ministry stepped in to control the situation. It used its regulatory powers. It ordered all airlines to cap prices and avoid exploiting passengers.

“These caps will remain in force until the situation fully stabilises. The objective of this directive is to maintain pricing discipline in the market, prevent any exploitation of passengers in distress, and ensure that citizens who urgently need to travel — including senior citizens, students, and patients — are not subjected to financial hardship during this period,” the ministry said in a press release Saturday.

IndiGo shows signs of recovery

IndiGo operations started improving on Sunday. The number of cancellations dropped. The airline also followed government instructions. It has already issued more than ₹610 crore in refunds to affected passengers.

Meanwhile, the industry continues to work toward stability. Airlines are adjusting schedules. The government is monitoring prices. Passagers can expect conditions to improve in the coming days.