Air India to refund passengers who booked tickets above new government fare cap

Air India will issue refunds to passengers who purchased domestic economy tickets priced above the new government-mandated limit, after the Ministry of Civil Aviation (MoCA) capped the maximum base fare at ₹18,000 on December 6.

The airline said in a notice on Monday that it began updating its reservation systems immediately after receiving the directive. Air India Express has already completed the full implementation of the capped fares, while Air India is in the process of rolling out the changes across all platforms, expected to be fully aligned within hours.

According to the airline, the update requires a phased rollout due to third-party system integrations, which it said is necessary to ensure accuracy and to avoid disruptions to ongoing bookings.

Passengers who booked economy-class tickets during the transition period at base fares higher than the newly prescribed ceiling will receive refunds for the difference.