India’s leading airlines- IndiGo, Air India and SpiceJet, have raised strong objections to the government’s decision mandating free selection of at least 60% seats on flights. The airlines have warned that the move could lead to higher ticket prices for passengers. The Federation of Indian Airlines (FIA), which represents these carriers, has also urged the Civil Aviation Ministry to withdraw the directive, citing concerns over its financial and operational impact.
Airlines warn of higher fares and revenue loss
On Wednesday (March 18, 2026), the Ministry directed the DGCA (Directorate General of Civil Aviation) to ensure that a minimum of 60% of seats on every flight are available for selection without any additional charge. The move aims to provide fair access to passengers amid rising concerns over high seat selection fees.
However, in a letter to Civil Aviation Secretary Samir Kumar Sinha on Thursday (March 19, 2026), FIA said the decision could have unintended consequences for the aviation sector. "The financial impact of the directive on airlines will be significant, compelling airlines to recover the lost revenues through increases in fares.
As a result, all passengers, including those who may not wish to preselect seats, will end up paying higher fares," it said. FIA pointed out that seat selection fees are a key source of ancillary revenue for airlines, especially in a high-cost environment where expenses such as fuel, maintenance and airport charges continue to rise.
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"Airlines operate on thin margins and rely on ancillary revenues to offset rising operational costs, including fuel, maintenance, airport charges, etc. Imposing a uniform restriction on ancillary revenue undermines commercial flexibility and interferes with market-driven pricing mechanisms," the airlines said.
Concerns over affordability and policy approach
Airlines currently charge between ₹200 and ₹2,100 for seat selection, depending on factors such as seat location and extra legroom.
FIA argued that while free seat selection may seem beneficial to passengers initially, it could ultimately prove counter-productive.
According to the airlines, the move could reduce affordability and consumer choice by shifting targeted charges into overall fare increases, impacting price-sensitive travellers the most.
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The body also criticised the lack of stakeholder consultation before the policy was announced and warned that such measures could set a precedent for increased regulatory intervention.
"If applied, this measure will set a precedent for excessive intervention in ancillary pricing with heavy loss of revenues for the airlines, apart from creating uncertainty for airlines regarding future regulatory constraints," FIA said.
It has urged the Ministry to withdraw the mandate issued to the DGCA.
Meanwhile, sources of The Hindu indicated that airlines have also highlighted additional challenges such as rising aviation fuel costs, especially in the context of the ongoing West Asia conflict, which is further straining the sector.
