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Scindia tweeted on Monday that, "Owing to the constructive policies of the government, domestic air traffic has seen the highest level, post the onset of the pandemic".

Airports in the country had a busy day on Sunday, with 2,69,713 passengers flying. This is 75% of what airlines used to carry during the pre-Covid days.

Elated airline executives and airport officials attributed the hike in the number of passengers to carriers selling tickets without mandatory price bands, according to a report in the Business Standard.

“Airports saw their busiest day on August 1, primarily as airlines were able to sell tickets without any government-mandated cap and floor. I am afraid this may not sustain as the price floor has been reintroduced. I think the numbers raise the necessity of a debate on whether the government fixing price caps and floors are good for the industry,” an executive of a private airport said, according to the report.

“According to DGCA numbers, Indian airlines carried about 3,50,000 fliers per day in January 2020. Consequently, 2,065 flights were operated during the day– 65% of pre-Covid capacity — exactly the limit at which government regulations allow airlines to operate,” it added.

The price cap, which was effective till July 31, was reintroduced on Sunday evening only. This gave airlines enough time to sell tickets at prices that were at least 30-40% lower than what was mandated by the Directorate General of Civil Aviation (DGCA).

“Say for Delhi-Mumbai, the price floor has been fixed at Rs 4,500. But airlines took advantage that the price floor was in effect till July 31 and sold tickets at Rs 2,500, which helped increase occupancy. This shows if the government didn’t create a hurdle by capping prices, airlines will reach pre-Covid capacity faster,” an airline executive said as per the report.