How air travel is set to become cheaper in India

Air travel is set to become cheaper in India. The Centre has asked airline operators to ensure that at least 60 per cent of seats on any flight are available free of cost for selection.

Airlines keep seat selection as a paid-for service for which passengers who want a seat of their choice pay above the ticket cost. The government’s new directive aims to make air travel more affordable and transparent.

Let’s take a closer look.

Most seat selection to be free

The Ministry of Civil Aviation has issued directives through the Directorate General of Civil Aviation (DGCA) to enhance the ease of travel for passengers.

Airlines have been told to ascertain that a minimum of 60 per cent of seats on any flight are allocated free of charge to ensure “fair access”.

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To further increase passenger facilitation, DGCA has ordered carriers to seat flyers with the same PNR together, preferably in adjacent seats.

Airlines will also have to facilitate the carriage of sports equipment and musical instruments in a "transparent and passenger-friendly manner, subject to applicable safety and operational regulations". They will also release clear, transparent policies for the carriage of pets.

Carriers will have to strictly follow the passenger rights framework, especially in case of delays, cancellations and denied boarding.

Passenger rights have to prominently feature across airline websites, mobile applications, booking platforms, and airport counters.

Airlines have to communicate passenger rights in regional languages to improve accessibility.

The aviation ministry said the move is aimed at "enhancing passenger experience, ensuring transparency, reducing grievances and upholding the highest standards of safety across the aviation ecosystem."

How airlines earn from seat selection

Airlines charge passengers an additional fee to book a seat of their choice on a plane.

A ‘seat selection charge’ is revealed when a flyer picks the air-travel service, often depending on fares listed upfront.

Air fares vary by cabin class, such as economy, premium economy, business or first. However, there is no difference between window, aisle, middle, front-row, rear-row or extra-legroom seats within the same class. All seats in a class have similar fares, but seat selection is a paid-for service, noted Mint. 

While charging extra for seats was initially for a few preferred seats, now most of the seats come with an extra price, ranging between Rs 200 and Rs 2,000. This extra fee accounts for a significant part of the airfare, amounting to 5-40 per cent.

Only a few seats are free, typically at the back of the plane or in especially cramped ones.

There are also times when there are not many paying customers. In such a case, several of these paid seats become free a few hours before departure.

For the aviation industry, ancillary income, including seat upgrades and lounges, plays a key role in expanding profitability. Airports have become consumer hubs, boasting luxury shops and services.

This ancillary revenue comes from everything that passenger purchases beyong the flight ticket, such as checked baggage, seat selection, in-flight WiFi and so on. Services provided by an airline's partners, including hotel bookings, car rentals, and airport transfers, are also included.

IndiGo's ancillary revenue jumped 20.7 per cent to Rs 7,944 crore in the financial year 2025, driven by cargo, excess baggage and seat selection. In the second quarter of FY26, the budget airline logged Rs 21,411 crore in ancillary income, a 14.2 per cent year-on-year increase that surpassed its ticket revenue growth, as per an Economic Times (ET) report.

Air India's ancillary revenue was estimated to climb to Rs 2,500 crore in FY25 from Rs 1,700 crore in FY24.

But do flyers want to pay extra for seats?

To avoid being allotted uncomfortable seats, many passengers are forced to pay for preferred seats.

However, a 2024 survey conducted by LocalCircles, a whopping 44 per cent of respondents expressed frustration for having to pay an additional fee for seat allocation during flight ticket purchases.

The survey compiled 41,000 responses from consumers spread across 339 districts in India. This indicates that a large number of passengers are unwilling to pay for seats on flights but end up shelling out extra to avoid the worst ones.

With inputs from agencies