Flight Fares Jump 20-100% In Peak Season: Can New Aviation Rules Bring Relief?

From dynamic ticket pricing to shrinking free baggage allowances, a petition before the Supreme Court has put several passenger concerns under scrutiny.

The Centre now has two weeks to place its newly framed aviation rules before the apex court as questions around fare surges and ancillary charges persist.

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Key points generated by AI, verified by newsroom

• SC mandates Centre submit new aviation rules within two weeks.
• Court examines concerns about steep airfare increases, ancillary charges.
• Petition seeks regulation of airfares, baggage, and surge pricing.

The Supreme Court on Monday gave the Centre two weeks to submit rules framed under the Bharatiya Vayuyan Adhiniyam, 2024, as the top court continued to examine concerns over steep airfare increases and additional charges levied by private airlines.

A Bench comprising Justices Vikram Nath and Sandeep Mehta directed the government to place the rules before the court in a sealed cover, regardless of whether they have been tabled in Parliament. The matter will next be heard on August 3, reported Financial Express.

“Considering the submissions, we grant two weeks time to place before this court the rules which have been framed, irrespective of whether they have been placed before the Parliament or not, in sealed cover. List on 3rd August,” the Court ordered.

Centre Says Aviation Rules Have Been Framed

The direction came after the Centre informed the Bench that the rules had already been prepared and were currently being translated before being placed before Parliament.

The Supreme Court, however, asked the government to submit the rules within the stipulated two-week period irrespective of their status before Parliament.

The case stems from a petition filed by social activist S. Laxminarayanan, who has sought stronger safeguards for air passengers and the establishment of an independent aviation regulator to oversee India's civil aviation sector.

Plea Flags Airfares, Baggage Fees and Surge Pricing

The petition seeks directions to the Centre and the Directorate General of Civil Aviation (DGCA) to introduce binding rules governing airfare pricing and ancillary charges.

It has also called for regulation of baggage fees, caps on surge pricing and standardised systems for ticket cancellations, refunds and passenger grievance redressal.

Appearing for the petitioner, senior advocate Ravindra Srivastava told the court that the existing regulatory framework would continue to govern the sector until the new rules were notified.

Questions Over Dynamic Pricing During Peak Demand

At the heart of the petition are concerns over the manner in which airlines determine ticket prices, particularly during festivals, holidays and other periods of high demand.

The petitioner has argued that the absence of a statutory authority empowered to regulate airfares and ancillary charges has allowed airlines to follow opaque pricing practices.

The plea also raises concerns over dynamic pricing, hidden charges, cancellation policies and inadequate mechanisms for resolving passenger complaints.

Reduction in Free Baggage Allowance Challenged

Another issue highlighted before the court is the reduction in the free check-in baggage allowance for economy-class passengers from 25 kg to 15 kg by several private airlines.

According to the petitioner, airlines have effectively turned a service that was previously included in the ticket price into an additional revenue stream.

The plea argues that passengers travelling without checked baggage do not receive any corresponding benefit despite the change in the baggage framework.

New Aviation Law Replaced 1934 Aircraft Act

The rules under scrutiny have been framed under the Bharatiya Vayuyan Adhiniyam, 2024, which came into force in January 2025.

The legislation replaced the Aircraft Act, 1934, and was introduced to modernise India's civil aviation framework. It provides a broader legal structure covering aircraft manufacturing, operations, maintenance and safety.

However, detailed subordinate legislation required to operationalise several provisions of the new law is yet to be notified.

Airfare Spikes Have Been Under SC Scanner

The issue of steep airfare increases has been under the Supreme Court's consideration since last year.

During an earlier hearing in January, the apex court raised concerns over sharp fare increases during festivals and major events, describing such pricing as exploitative.

The debate over airfare pricing gained further attention during the Maha Kumbh, when demand for flights to Prayagraj surged alongside ticket prices.

According to an analysis by travel portal ixigo, a one-way ticket on the Bhopal-Prayagraj route jumped 498 per cent to Rs 17,796 from Rs 2,977 a year earlier. Airfares on the Delhi-Prayagraj route also increased by up to 21 per cent during the period.

Similar increases are seen during almost every festive season, with airfares typically rising between 20 per cent and 100 per cent as demand peaks.

How Are Airfares Currently Decided?

Under the existing regulatory framework, airfares under normal circumstances are driven by market conditions and are neither fixed nor regulated by the government.

Tariff fixation was deregulated following the repeal of the Air Corporations Act in March 1994. Airlines are allowed to determine fares under Rule 135(1) of the Aircraft Rules, 1937, after considering factors including operating costs, the characteristics of the service, reasonable profit and prevailing market tariffs.

As a result, ticket prices fluctuate according to market forces and demand-supply conditions, allowing carriers to use dynamic pricing models.

Court Had Earlier Sought Relief for Passengers

In May this year, the Supreme Court had also observed that airfares should be rationalised and asked the Centre to explore measures that could provide relief to passengers while hearing the same matter.

Monday's direction seeking the rules framed under the new aviation law is the latest development in the apex court's examination of the proposed regulatory framework and passenger protection measures in India's civil aviation sector.