The price controls, introduced in December after widespread flight cancellations by market leader IndiGo drove up ticket prices across the sector, will be withdrawn as conditions stabilise, the civil aviation ministry said in the order dated Friday.

“The prevailing situation has since stabilised, with restoration of capacity and normalisation of operations across the sector,” the ministry said. The order has not been made public, and a ministry spokesperson did not respond to a request for comment.

The caps had been imposed following disruptions that tightened seat availability and triggered fare spikes at rival carriers. Authorities intervened to limit price volatility and protect passengers.

Indian carriers had urged the government to remove the caps, arguing they were incurring significant revenue losses amid rising expenses, particularly from higher jet fuel prices.

Analysts at HSBC have estimated that a $1 per barrel change in fuel prices can alter IndiGo’s annual fuel bill by roughly 3 billion rupees.Under the restrictions, one-way fares for routes up to 500 km were capped at 7,500 rupees, while tickets for journeys between 1,000 and 1,500 km, including the busy New Delhi–Mumbai sector, were limited to 15,000 rupees.

The government directed airlines to ensure pricing remains “reasonable, transparent and commensurate with market conditions,” adding that passenger interests should not be adversely affected as the controls are lifted.

The move signals a shift back toward market-driven pricing in India’s aviation sector as operational stability returns, even as cost pressures persist.

The airport operator confirmed on Saturday morning that all systems were fully restored, ensuring smooth operations at one of the world’s busiest travel hubs.

The disruption occurred due to a malfunction in the system responsible for generating flight plans, a core function that coordinates air traffic and scheduling.

The issue caused significant delays across both domestic and international flights, affecting thousands of passengers. However, the Airports Authority of India reported that the system was successfully restored by late Friday evening, allowing airlines to resume regular flight schedules.

Officials from Delhi International Airport Limited (DIAL), operated by GMR Group, said their technical teams worked around the clock to resolve the problem.

The airport’s swift response and communication with airline partners helped minimize long-term disruptions. Passengers were advised to check with their respective airlines during the delay period, but operations have now stabilized completely.

Delhi airport, which handles more than 1,200 flight movements per day, is South Asia’s largest aviation hub and among the top 10 busiest airports globally.

Even minor technical issues can create ripple effects across the aviation network, but DIAL’s recovery efforts ensured that normal operations resumed faster than expected.

Industry analysts have praised the airport’s quick response as an example of effective crisis management in modern aviation.

The successful recovery reflects India’s growing capacity for high-tech infrastructure maintenance and the strong coordination between airlines, air traffic controllers, and ground staff.

A spokesperson from DIAL assured passengers that the airport’s internal systems are being reviewed to prevent similar disruptions in the future.

Additional technical audits and backup mechanisms are expected to be implemented to enhance resilience. “All flight operations are running smoothly now, and passengers can travel without any concerns,” the spokesperson said.

Passengers who experienced delays on Friday have reported that staff were proactive in providing updates, meal vouchers, and rebooking options.

Airlines including IndiGo, Air India, and Vistara also confirmed that flight schedules were back on track by Saturday morning.

The brief disruption came at a time of increased travel demand ahead of the festive season, when airports across India experience higher passenger traffic.

Despite the glitch, Delhi airport maintained safety and order, preventing crowding or operational backlogs.

This incident also highlights the growing dependence of modern airports on advanced digital systems for air traffic management.

Aviation experts note that as India expands its air network and passenger capacity, the robustness of these systems will become increasingly vital.

Investments in technology, automation, and staff training are expected to continue as part of Delhi airport’s modernization plans.

In recent years, Delhi airport has achieved multiple milestones, including upgrades to Terminal 1 and Terminal 2, expansion of cargo capacity, and new sustainability initiatives.

It also serves as a key transit point connecting major international destinations, making its operational stability crucial to India’s global aviation presence.

As of Saturday afternoon, all arrivals and departures were proceeding according to schedule. Flight tracking platforms showed normal traffic flow across all terminals, with no residual delays reported.

The incident serves as a reminder of the complexities of modern aviation systems and the importance of real-time crisis management in maintaining passenger confidence.

With the glitch now resolved, Delhi airport officials reaffirmed their commitment to ensuring reliable, safe, and efficient travel experiences for millions of passengers every month.