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after widespread flight cancellations by market leader IndiGo drove up ticket prices across the sector, will be withdrawn as conditions stabilise, the civil aviation ministry said in the order dated Friday.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

Pratt & Whitney parent RTX (RTX.N) said in July a rare powder metal defect could lead to the cracking of some engine components in the twin-engined Airbus A320neo, and called for accelerated inspections.

The checks are expected to lead to groundings of hundreds of Airbus (AIR.PA) jets between 2023 and 2026, prompting IndiGo to take early steps to sustain its growth in India’s booming aviation market.

“Looking ahead, demand remains robust. However we have been informed of aircraft grounding … there’s a mitigation plan under execution and we are confident of meeting our financial year 2024 capacity guidance,” Pieter Elbers, IndiGo’s chief executive officer, said in a post-earnings call.

IndiGo has retained 14 of its older Airbus A320ceo, extended leases on 36 other aircraft, and is taking 11 additional aircraft on lease starting November. It is also leasing 12 more A320ceos from the secondary market starting January, IndiGo’s Chief Financial Officer Gaurav Negi said on the same call.

With this, the airline is on track to meet its guidance to expand its current capacity of 334 planes by “north of the mid-teens” this fiscal year and to double in size by 2030, Negi said.

The company is in talks with Pratt & Whitney for compensation over engine issues and expected payments to be staggered, he said.

Close to 40 IndiGo planes are currently grounded due to older issues with Pratt & Whitney engines and the airline is yet to ascertain the number of groundings from the new problems.

IndiGo, which is one of the largest customers for the A320 family of planes, said it expected higher leasing costs to be offset by strong demand for air travel and an overall reduction in air capacity in India following bankruptcy of rival Go First.

IndiGo (INGL.NS) is in talks to buy Boeing’s 787 family of twin-aisle aircraft, which has been pitted against Airbus A330neo jets, said the sources who are familiar with the matter.

No decision has been finalised, the sources said, requesting anonymity as the negotiations are confidential.

IndiGo said it does not comment on speculation. Boeing did not immediately respond to requests for comment. Airbus said it never comments on discussions it may or may not be having with existing and prospective customers.

Reuters first reported in March that IndiGo was in talks with Airbus and Boeing for the wide-body jets.

The recent talks come weeks after IndiGo placed a record order for 500 Airbus narrow-body jets, shadowing an earlier record deal by rival Air India for 470 Airbus and Boeing planes.

Indian carriers are trying to keep pace with the world’s fastest-growing aviation market, where demand for air travel has surged post-COVID, sending industry records tumbling even as plane manufacturers are struggling to meet output goals.

The drive by IndiGo, which has 58% share of India’s domestic market, also comes at a time when it is aiming to double its capacity by the end of the decade and expand its network, especially in international markets.

IndiGo recently launched new flights to destinations in Africa, West Asia and Southeast Asia, and is also growing its presence in Europe through its codeshare partnership with seven carriers including Turkish Airlines and KLM.

So far, IndiGo has been an exclusive buyer of Airbus narrow-body jets and a deal for wide-body planes would be a departure from that strategy. Earlier this year it began international operations with a Boeing 777, its first twin aisle aircraft taken from partner Turkish Airlines, which provides the pilots.

India’s biggest airline by market share posted a profit of 30.87 billion rupees ($373.87 million) for the three months to June 30, compared with a loss of 10.65 billion rupees a year earlier.

Revenue from operations jumped nearly 30% to 166.83 billion rupees.

Fuel costs for the company fell 12.7% in the June quarter from a year earlier, it said.

The airline benefited from troubles at smaller rivals Go First and Spicejet , as well as a strong recovery in air travel demand in the world’s third-largest aviation market.

IndiGo’s yields, a metric for profitability, fell 1.2% year-over-year to 5.18 rupees per kilometre.

The low-cost carrier’s load factor, or the passenger carrying capacity being utilised, improved by nine percentage points to 88.6%.

The company expects capacity to rise by about 25% from a year earlier in the current quarter.

IndiGo, India’s dominant carrier, is buying the narrow-body A320 aircraft in what the companies said was the single biggest purchase agreement in commercial aviation history.

Executives from both companies announced the deal on the opening day of the Paris Air Show, the world’s largest event focusing on aviation and space industry. They didn’t disclose how much the order was worth, but it would likely amount to tens of billions of dollars.

The order is “an enormous milestone,” IndiGo CEO Peter Elbers said at a press conference. “No one has ever ordered an order of this magnitude. And it speaks to the potential of Indian aviation and the ambitions which IndiGo is having.”

The purchase highlights how the two companies are “democratizing affordable air travel for millions of people in the world’s fastest growing aviation market,” Airbus Chief Commercial Officer Christian Scherer said in a statement.

New Delhi-based IndiGo’s order surpasses another mammoth deal signed months earlier by Air India for 470 aircraft from both Airbus and U.S.-based rival Boeing.

Indian airlines are racing to tap surging demand for travel from the nation’s growing ranks of middle-class consumers. The A320 jets that IndiGo is buying are typically used on short-haul routes.

Airbus CEO Guillaume Faury said IndiGo’s order “is a sign of the “incredible growth for aviation” and an “opportunity for Indian people to fly for the first time.

The planemaker also notched up orders from Flynas, a budget Saudi Arabian carrier that is buying 30 A320neo jets, and Air Mauritius, which is buying three wide-body A350 aircraft for use on long-haul routes to Europe and South Asia.

Airbus likes to unveil major jet orders at the air show held every other year in its home country. Airbus is one of France’s — and Europe’s — biggest companies, and its performance at the Paris air show is seen as important to its public image in France.

Rakesh Gangwal and his wife, Shobha Gangwal, hold 13.23% and 2.99% respectively in InterGlobe as of March 31, while their Chinkerpoo Family Trust holds a 13.5% stake, according to exchange data.

The Gangwal family will likely sell stake in block deals when the lock in for shares open on July 15, the report said.

Shobha Gangwal had cut her stake in the company by over 4% in February.

Interglobe Aviation and a represenatative for the Gangwal family did not immediately respond to Reuters’ request for comment.

Rakesh Gangwal resigned from the company’s board in Feb. 2022 and had said that he would cut his stake in the airline over five years.

Rakesh Gangwal and Rahul Bhatia, who co-founded IndiGo in 2006, fell out in early 2020 when the former sought to modify certain rules in the company’s articles of association.

Shares of the company, which are up over 19% year to date, fell as much as 3.1% after the stake sale report.