"We have been trying to compare ticket cancellation charges with international trend," DGCA chief M Sathiyavathy had said last month.
In a first of its kind move the Civil Aviation Ministry has allowed an airline to operate more flights during a particular period to the northeast.
Jet fuel constitutes over 40% of an airline's operating cost and the latest price increase will add to the financial burden of cash-strapped carriers.
Jet Airways reported a profit of 4.26 billion rupees for its fourth quarter to the end of March, compared with a loss of 18.03 billion rupees in same quarter a year earlier.
DGCA expects more than 100 million domestic passengers to fly by the year end, especially as India has outstripped passenger traffic growth in this sector across major global economies.
Aided by higher revenues and lower fuel costs, SpiceJet saw its net profit more than triple to Rs 73.19 crore in the three months ended March 2016.
Besides, Lohani in his communication has also asked the staff to be "courteous and polite" to passengers and said wearing a smile would be a "good thing".
Full service airlines like Thai Airways, Garuda Indonesia and Philippine Airlines, which have lost market share to budget carriers over the last decade, say they plan to use their long-haul network to connect passengers to their Southeast Asia services.