New Delhi — India is set to remove the temporary price caps it placed on domestic airfares back in December, according to a government order reviewed by Reuters. The decision, effective from Monday, comes as airlines struggle with rising operational costs triggered by the ongoing Iran war.

The fare caps were originally introduced after market leader IndiGo faced a wave of mass flight cancellations, which sent ticket prices soaring across competing carriers. Now, with operations back on track, the government says the crisis has passed.

“The prevailing situation has since stabilised, with restoration of capacity and normalisation of operations across the sector,” India’s civil aviation ministry stated in its order.

The order, dated last Friday, has not been officially made public, and a ministry spokesperson did not respond to requests for comment at the time of reporting.

Why Airlines Pushed Back Against the Caps

Indian carriers had been lobbying hard for the removal of these price limits, calling them a source of “huge” revenue losses — especially as jet fuel prices climbed sharply in the wake of the Iran conflict. While airlines have not disclosed exact figures, HSBC analysts estimate that even a $1-per-barrel shift in fuel prices could swing IndiGo’s annual fuel bill by around ₹3 billion.

What Were the Fare Caps?

Under the now-lifted rules:

• Flights up to 500 km were capped at ₹7,500 (~$80)
• Routes between 1,000–1,500 km — including the busy Delhi-Mumbai corridor — were capped at ₹15,000

What Happens Next?

With the caps removed, the government has still asked airlines to keep fares “reasonable, transparent, and in line with market conditions” — making clear that passenger interests must not be overlooked.

For travelers, this likely means some price increases on popular routes in the short term, particularly as airlines look to recover losses. However, increased competition could help keep fares in check over time.

($1 = ₹93.67 at the time of reporting)

US military presence West Asia Iran Israel conflicts sending three additional warships and about 2,500 more Marines to West Asia, as the ongoing conflict shows no signs of slowing down—even after three weeks of US and Israeli airstrikes targeting Iran.

To fund the escalating operations, the Pentagon is requesting another $200 billion, though it would need approval from Congress. This comes at a time when the US national debt has hit a record $39 trillion.

Hours after the announcement, President Donald Trump suggested on social media that his administration is considering “winding down” military operations in the region—a statement that adds to the uncertainty around what comes next.

Meanwhile, Israeli Prime Minister Benjamin Netanyahu said Israel has agreed to stop striking a key Iranian gas field that supplies most of the country’s electricity, following a request from Trump. In response to Israel’s earlier attacks on the field, Iran has stepped up strikes on energy infrastructure across other West Asian nations.

The human toll continues to grow. So far, more than 1,300 people have died in Iran, over 1,000 in Lebanon, 15 in Israel, and 13 US service members in the region. Millions more have been displaced in Lebanon and Iran as the violence shows no sign of letting up.