India had suspended scheduled commercial passenger flights for two-months before resuming domestic flights from May 2020, but had also imposed seven sets of floor and ceiling for seven categories of route lengths covering the entire domestic network.
After more than two years, the government removed the fare caps with from August 31 and left the fairs determination on market forces of demand and supply.
According to the report, the discontinuation of fare caps by the government had led to a 30 per cent drop in airfares across routes in September, which came as a relief to travellers who had to pay up eye-watering fares over the previous months due to soaring fuel prices. As the demand is expected to rise until December fares are set to be higher in the current quarter.