₹8,000 or ₹18,000 for the same flight? Supreme Court questions airline pricing

The Supreme Court on Friday questioned the wide variation in airfares charged by airlines on the same routes and asked the Centre to consider measures that could provide relief to passengers facing unpredictable ticket prices.

Hearing a petition on airfare regulation and passenger rights, a bench of Justices Vikram Nath and Sandeep Mehta observed that economy fares for the same sector and same day could differ drastically between airlines.

“Try to give some relief to the people because of the discrepancy. On the same day, flights to the same sector, one airline charges ₹8,000 while the other airline charges ₹18,000 for the economy class,” the bench told Solicitor General Tushar Mehta, who appeared for the Centre.

The court also stressed the need for “some rationalisation” in airfare pricing as concerns grow around dynamic fare systems, ancillary charges and lack of transparent consumer safeguards in India’s aviation sector.

Court turns focus on dynamic airline pricing

The observations came during the hearing of a plea filed by social activist S Laxminarayanan, who has sought the creation of a robust and independent regulatory mechanism to ensure transparency and stronger passenger protection across civil aviation.

The petition challenges what it describes as “unpredictable fluctuations” in airfare and additional charges imposed by private airlines.

The plea argues that passengers currently face:

• Arbitrary fare hikes
• Hidden ancillary charges
• Reduced baggage allowances
• Opaque pricing systems
• Weak grievance redressal mechanisms

According to the petition, airlines are increasingly relying on dynamic pricing models without sufficient regulatory oversight, particularly during peak travel seasons, festivals or weather disruptions.

The Supreme Court has previously described steep airfare increases during such periods as a form of “exploitation”.

Government says new rules are under consultation

During Friday’s hearing, Solicitor General Tushar Mehta informed the bench that the government was already working on a revised regulatory framework under the Bharatiya Vayuyan Adhiniyam, 2024, which came into effect in January 2025.

He said corresponding rules under the new law are currently under consultation.

“The government is not disputing the problem,” Mehta told the court, adding that the Centre was treating the matter as “non-adversarial” and examining all relevant aspects.

The statement signals that the Ministry of Civil Aviation is actively reviewing concerns related to airfare regulation and consumer protection.

The court recorded the Centre’s submission and posted the matter for further hearing on July 13.

Debate shifts to enforcement gap

Senior advocate Ravindra Srivastava, appearing for the petitioner, argued that the issue was not the absence of rules but inadequate enforcement of existing powers.

He pointed to provisions under the Aircraft Act, 1937, which empower regulators to intervene if airlines are found charging predatory or excessive fares.

According to Srivastava, the rules already permit the Directorate General of Civil Aviation (DGCA) to issue directions in such situations.

“The rules are there, the power is there but it is a case of non-exercise of powers,” he submitted before the bench.

The argument highlights a broader concern increasingly raised by consumer rights advocates: whether India’s aviation regulatory structure has kept pace with evolving airline pricing models.

Baggage cuts and ancillary fees also questioned

Apart from airfare fluctuations, the petition also challenges recent reductions in complimentary baggage allowances offered by airlines.

The plea claims private carriers have reduced free check-in baggage for economy class passengers from 25 kg to 15 kg, effectively converting a previously included service into an additional revenue stream.

It further argues that:

• Airlines now permit only a single check-in baggage piece in many cases
• Passengers receive no rebate if they travel without check-in luggage
• Ancillary fees have become increasingly opaque and inconsistent

The petition describes the measures as “arbitrary and discriminatory”.

It also claims there is currently no effective authority with powers to review or cap airfare and ancillary charges, leaving passengers vulnerable to exploitative pricing behaviour.

Airfare volatility under growing scrutiny

India’s aviation market has witnessed significant fare volatility in recent years, particularly during:

• Festival periods
• Weather-related disruptions
• Holiday travel peaks
• Last-minute bookings
• Flight cancellations or route disruptions

Dynamic pricing systems used by airlines automatically increase fares based on demand, seat availability and travel patterns.

While airlines argue that such systems are globally accepted commercial practices, critics contend that excessive fare spikes disproportionately hurt last-minute travellers and lower-income passengers.

The plea before the Supreme Court argues that aviation, as an essential transport service, cannot operate entirely without pricing safeguards.

It further claims that the absence of regulatory intervention affects citizens’ rights to mobility and equal access to transportation.

Centre had earlier faced criticism from court

The latest hearing follows earlier criticism from the Supreme Court regarding delays in the Centre’s response to the petition.

On April 30, the apex court pulled up the government for failing to file its affidavit in the matter and sought an explanation for the delay.

Earlier, while hearing the case on January 19, the court had indicated it was willing to examine the issue of unpredictable airfare fluctuations and rising ancillary charges more closely.

The Centre subsequently informed the court in February that the Ministry of Civil Aviation was actively considering the issues raised.

The matter has since evolved into a broader examination of airline pricing practices and passenger rights in India’s rapidly expanding aviation market.

Aviation sector may face closer regulatory oversight

The proceedings come at a sensitive time for airlines already navigating rising operational costs, geopolitical disruptions and volatile fuel prices.

Industry executives have long argued that dynamic pricing is essential for managing inventory, route profitability and fluctuating demand patterns.

However, the court’s latest observations indicate that regulators may face increasing pressure to introduce stronger transparency measures and consumer safeguards.

The outcome of the case could potentially shape future rules governing:

• Dynamic pricing practices
• Ancillary airline charges
• Baggage policies
• Passenger grievance systems
• Fare transparency standards

For millions of Indian travellers, the larger question remains simple: how much should a flight ticket reasonably cost, and who decides when pricing crosses into exploitation?

The Supreme Court appears ready to examine that question more closely.