An airlines body representing major Indian carriers, including IndiGo, Air India and SpiceJet, has warned the government that it may be forced to reduce routes and delay expansion plans if current airfare caps are not removed.

In a letter sent to the government on March 12, the Federation of Indian Airlines (FIA) said airlines are facing increasing financial pressure. The fare caps were introduced in December after widespread flight disruptions, particularly due to cancellations by IndiGo, to control ticket prices.

Although the situation has improved since then, the fare limits are still in place without any clear timeline for removal.

The airlines have said that these restrictions are causing heavy revenue losses at a time when operational costs are rising. One of the major reasons for higher costs is the recent increase in jet fuel prices, which has been impacted by ongoing tensions in the Middle East.

Airlines are also facing additional challenges due to airspace restrictions. Earlier, a ban on using Pakistani airspace forced airlines to take longer routes for international flights. Now, ongoing geopolitical issues have further increased flying times, especially for flights to Europe and North America, adding to fuel consumption and costs.

The FIA warned that if the current situation continues, airlines could face serious financial difficulties, which may affect their long-term sustainability.

In a separate communication, the airlines body also requested the government to withdraw a rule requiring airlines to offer at least 60% of seats without extra charges for seat selection. According to the airlines, this rule could lead to higher ticket prices overall.

The government and the airlines involved have not yet officially responded to the matter.