India to withdraw temporary domestic airfare caps from Monday

India will revoke the temporary fare caps it had imposed on domestic air tickets from Monday, the country's civil aviation ministry said on Saturday.

The caps were introduced in December after a spate of mass cancellations by market leader IndiGo led to a spike in air fares at other airlines.

At the time, authorities stepped in to limit ticket prices, with one-way fares capped at between 7,500 and 18,000 rupees depending on distance, in an effort to protect passengers from steep price hikes.

Officials now say conditions in the domestic aviation market have stabilised, allowing airlines to return to normal pricing without restrictions.

However, the removal of the caps comes at a time of rising operating costs for airlines, driven in part by higher fuel prices and disruptions to global flight routes, meaning fares could increase.