Domestic Fares Capped, International Prices Soar in IndiGo Fallout

New Delhi, December 12, 2025: The operational meltdown at IndiGo, India’s largest airline, has triggered a severe domino effect across the nation’s air travel network, leading to a dramatic surge in ticket prices. While the government quickly imposed maximum fare caps on domestic routes to protect travelers from “opportunistic pricing,” international airfares remain untouched by these limits, allowing them to skyrocket and disrupt global travel plans.

The Root of the Chaos: Pilot Shortage and New Rules

The crisis began with the airline’s failure to adapt to stricter Flight Duty Time Limitations (FDTL) rules, which mandate longer rest periods and restrict flying hours for pilots, especially during the night. Despite having ample time to prepare for these new safety regulations, IndiGo reportedly faced a significant shortage of available pilots. This operational gap, combined with the peak December travel season, led to the cancellation of thousands of flights, crippling the air network.

The Two-Tier Pricing Problem

In response to the domestic price gouging—where some tickets were reportedly selling at seven to eight times the usual cost—the Ministry of Civil Aviation (MoCA) swiftly capped fares for domestic economy flights based on distance (up to ₹18,000 for long-haul routes).

However, the international segment is a different story. Unlike domestic routes, there is no official cap on international airfares. With IndiGo being a major player with a growing global network and code-share agreements, its capacity reduction immediately created a massive demand-supply imbalance on key foreign routes.

Global Impact and Passenger Distress

For travelers heading abroad, the disruption is more complex and costly.

• Sky-High International Tickets: Passengers whose international IndiGo flights were cancelled, or who missed connecting flights due to domestic delays, are now forced to rebook on other airlines at exorbitant prices. Reports indicate major price increases on popular international routes, including those to Dubai, Bangkok, and Istanbul.
• Wider Financial Loss: International travelers, who often book hotels and make ground arrangements far in advance, are facing additional financial losses from non-refundable bookings and ‘no-show’ charges abroad.
• The Connecting Flight Nightmare: Many international journeys start with a domestic IndiGo leg. The cancellation of these initial flights has left passengers stranded in transit hubs, missing their connecting flights and facing complex, expensive re-routing options.

What’s Next for Fliers?

While the government has intervened to stabilise the domestic situation and ordered IndiGo to process swift refunds, the lack of a regulatory mechanism for international fares means global travelers must continue to bear the brunt of the inflated prices.

IndiGo has stated that it is working to normalise operations, but the overall situation remains volatile. The crisis highlights the need for better long-term planning by dominant airlines to prevent such widespread disruption, and a potential review of fare regulation on high-demand international sectors during periods of systemic crisis.