Airfare Spike Under Scanner as Government Seeks Fare Data From Major Airlines

India’s aviation sector has come under heightened regulatory scrutiny after the central government sought detailed airfare data from major domestic airlines following a sharp spike in ticket prices during widespread travel disruptions in December. The move comes amid an ongoing investigation by the competition watchdog into whether market dominance was misused during the period of chaos that left thousands of passengers stranded.

The Directorate General of Civil Aviation (DGCA), which oversees civil aviation safety and operations, has formally written to leading carriers asking them to submit route-wise average fares charged between December 1 and December 15. The data request covers both economy and premium economy categories and applies to airlines including IndiGo, Air India, Air India Express, SpiceJet, and Akasa Air.

The request follows unprecedented disruptions in domestic air travel last month, triggered largely by pilot shortages at IndiGo, which holds around 65 per cent of India’s aviation market. The staffing crunch reportedly forced the airline to cancel approximately 4,500 flights, creating a ripple effect across the sector. With capacity sharply reduced, airfares on several routes surged, drawing public criticism and prompting the government to step in with temporary fare caps.

According to officials familiar with the matter, the fare data has been sought at the request of the Competition Commission of India (CCI), which is examining whether pricing patterns during the disruption period point to anti-competitive behaviour. The DGCA’s communication also asks airlines to provide detailed fare information for routes that were most affected by cancellations and delays.

In December, the CCI announced that it was proceeding against IndiGo to assess whether the airline had abused its dominant market position during the crisis. While there is currently no indication that the probe has been expanded to include other carriers, the collection of comparative fare data across airlines is expected to help regulators assess broader pricing trends and identify anomalies.

One of the complaints under review alleges that after cancelling flights, IndiGo allegedly offered seats on remaining services at significantly higher prices, raising concerns about exploitative pricing practices during a period of constrained supply. IndiGo has so far not made a public statement on the investigation, while other airlines have either declined to comment or have not responded to queries.

The aviation regulator and the competition authority have also remained tight-lipped on the specifics of the data request. However, industry experts say the move signals a tougher regulatory stance on fare volatility, particularly during emergencies or operational breakdowns that leave passengers with limited travel options.

The December disruptions highlighted the fragility of India’s rapidly expanding aviation market, where high demand, limited spare capacity, and staffing challenges can quickly translate into price shocks for consumers. With air travel becoming increasingly essential for business and personal mobility, regulators are under pressure to ensure that airlines balance commercial considerations with consumer protection.

As authorities analyse the submitted data, the outcome of the probe could have long-term implications for pricing practices and competition oversight in India’s aviation sector. For now, the government’s intervention underscores its intent to closely monitor airfare trends and hold airlines accountable during periods of market stress.