Domestic airlines were allowed to operate at over 80 percent of per-Covid capacity in December 2020. It was later reduced due to the second Covid wave.

Last month, the Centre had allowed domestic airlines to deploy up to 72.5 percent of their flight capacity, up from 65 percent.

The Civil Aviation Ministry had hiked the capacity to 65 percent in July from 50 percent.

"After review of the current status of scheduled domestic operations vis-a-vis passenger demand for air travel in terms of the purpose specified in the initial order is further modified," the Ministry of Civil Aviation said in the order issued on Saturday.