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Airlines Protest Free Seat Selection: Fares Likely to Rise

Airlines oppose free seat selection, warn of increased airfares.

Mar 21
3 min read
Airlines Protest Free Seat Selection: Fares Likely to Rise

Top Summary

  • What happened: IndiGo, Air India, and SpiceJet are protesting the government's mandate for airlines to offer at least 60% of seats for free selection.
  • Why it matters: Airlines claim this will significantly impact their revenue and force them to increase airfares.
  • What changes for people: Passengers may face higher ticket prices to compensate for lost seat selection revenue.
  • Who is affected: All air passengers, especially price-sensitive travelers, and airlines operating in India are impacted.

Airlines Resist Free Seat Selection Mandate

Major Indian airlines, including IndiGo, Air India, and SpiceJet, are strongly objecting to the government's directive requiring them to offer at least 60% of seats for free selection on flights.

The airlines, represented by the Federation of Indian Airlines (FIA), argue this move will negatively impact their financial stability and force them to raise airfares to offset lost revenue.

Financial Implications and Fare Hikes

In a letter to Civil Aviation Secretary Samir Kumar Sinha on Thursday, March 19, 2026, the FIA expressed concerns about the “unintended and adverse consequences” of the directive.

 

"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,"

 

The FIA emphasizes that seat selection fees are a crucial part of airline revenue, especially considering rising operational costs. Airlines operate on narrow profit margins and depend on ancillary revenues to cover expenses like fuel, maintenance, and airport charges.

Concerns over Market Intervention

The FIA believes the government's mandate interferes with market-driven pricing mechanisms and restricts commercial flexibility.

 

"Imposing a uniform restriction on ancillary revenue undermines commercial flexibility and interferes with market-driven pricing mechanisms,"

 

According to FIA, while free seat selection might seem beneficial to passengers initially, the ultimate outcome would be higher fares and reduced consumer choice, disproportionately affecting price-sensitive travelers.

Stakeholder Consultation and Operational Challenges

The FIA also raised concerns that the Ministry did not consult with stakeholders before announcing the decision on Wednesday, March 18, 2026. They are urging the Ministry to withdraw the mandate given to the DGCA (Directorate General of Civil Aviation).

The airlines have reportedly informed the Ministry about various operational challenges, including rising jet fuel prices due to the West Asia conflict.

Passenger Impact and Revenue Loss

Currently, airlines typically charge between ₹200 to ₹2,100 for seat selection, depending on location and legroom.

The FIA believes the free seat selection mandate will:

  • Shift user-based charges to blanket fare increases.
  • Disproportionately affect price-sensitive travelers.
  • Erode affordability.

The FIA also warned this sets a precedent for excessive intervention in ancillary pricing, leading to heavy revenue losses for airlines and creating uncertainty regarding future regulations.

What to Watch Next

The Civil Aviation Ministry is expected to review the airlines' concerns regarding the free seat selection policy. The outcome of these discussions will determine whether the DGCA mandate remains in effect or is revised.