The decision was made to allow an increase in domestic air travel as governments reduces Covid-imposed restrictions. Given the rising demand for domestic air travel, the capacity of domestic civil aviation operations will be expanded to 65 percent from 50 percent from the date of this order until July 31, 2021, or until future orders,” according to the ministry.

The civil aviation ministry permitted airlines to boost their flying capacity from 70% to 80% of pre-covid levels on December 3 of last year. Following a two-month suspension of all flying operations, the government began allowing domestic flights on May 25, 2020, with a capacity of 33 percent of pre-covid levels, which was then boosted to 45 percent in June and so on.

However, beginning in March 2021, passenger traffic began to decline, prompting airlines to petition the government to reduce seating capacity from 80% to 60%. Due to the surge in fuel prices, the government has already lifted the upper limit on airfare by about 14%.

By December of last year, the cap had been gradually raised to up to 80%. Meanwhile, the government increased the lowest fare limit from 13 to 16 percent, with the hike taking effect on June 1.

The upper limit of fares remains does not change. The action was aimed at helping industry amid the devastating 2^nd wave of Corona Virus that significantly curtailed air travel.

After a drop in April and May, daily domestic flyers have been steadily increasing in recent days. For example, on July 3, almost 1.6 lakh domestic passengers flew, compared to less than 50,000 on many days during the peak second wave in May.