Supreme Court Flags Exploitative Airfare Surges During Festivals, Says It Will Intervene
PIL seeks guidelines to regulate unpredictable ticket hikes and ancillary charges
Court asks Centre and DGCA to respond on regulating airline pricing practices
By Our Legal Reporter
New Delhi: January 22, 2026:
The Supreme Court of India has raised serious concerns over the sharp surge in air ticket prices during festivals and high-demand events like the Kumbh Mela, describing the practice as exploitative. A bench of Justices Vikram Nath and Sandeep Mehta was hearing a Public Interest Litigation (PIL) filed by social activist S. Laxminarayanan, which seeks binding guidelines to regulate airfares and ancillary charges imposed by airlines.
The Court observed that passengers were being unfairly exploited through algorithm-driven dynamic pricing, day-of-travel surcharges, and reduced baggage allowances. It directed the Centre and the Directorate General of Civil Aviation (DGCA) to file detailed responses and indicated that it would intervene to regulate the sector.
Case Background
- The PIL: Filed by activist S. Laxminarayanan, challenging exploitative airline practices.
- Issues raised:
- Dynamic pricing algorithms leading to unpredictable fare hikes.
- Ancillary charges such as reduced baggage allowance (from 25 kg to 15 kg).
- Lack of regulatory authority to cap or review fares.
- Court’s remarks: The bench described the fare hikes during the Kumbh Mela and other festivals as “exploitation,” citing examples of exorbitant fares from Delhi to Prayagraj and Jodhpur.
The matter has been listed for further hearing on February 23, 2026.
Court’s Observations
The Supreme Court made several important points:
- Exploitation of passengers: Airlines were charging exorbitant fares during festivals and emergencies.
- Need for regulation: Currently, no authority has the power to cap or review airfares.
- Centre and DGCA’s role: Both were asked to file replies and consider guidelines to regulate pricing.
- Judicial intervention: The Court said it would “definitely interfere” to protect passengers from exploitation.
Broader Implications
This ruling has significant implications for India’s aviation sector:
- Passenger protection: Ensures fairness and transparency in ticket pricing.
- Regulatory reform: May lead to new guidelines or a regulatory body to oversee airfares.
- Impact on airlines: Carriers may face restrictions on dynamic pricing and ancillary charges.
- Public confidence: Could restore trust in air travel during peak demand periods.
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Public and Expert Reactions
- Legal experts: Welcomed the Court’s proactive stance, saying it strengthens consumer rights.
- Passengers: Expressed relief, noting that festival travel often becomes unaffordable.
- Airlines: Warned that strict regulation could affect profitability and operational flexibility.
- Policy analysts: Said the ruling may push India toward a more balanced model of fare regulation, like practices in other countries.
Conclusion
The Supreme Court’s intervention in the issue of exploitative airfare surges during festivals marks a turning point in India’s aviation sector. By flagging unfair practices and directing the Centre and DGCA to respond, the Court has signalled its intent to protect passengers from unpredictable fare hikes.
As the matter progresses, the outcome could reshape airline pricing policies, ensuring greater transparency, fairness, and accountability in India’s civil aviation industry.
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