New Delhi, February 26, 2026 — Air travellers in India will now enjoy greater flexibility and transparency in ticket cancellations and refunds, following revised regulations issued by the Directorate General of Civil Aviation (DGCA). The updated Civil Aviation Requirements (CAR), effective immediately, set clear timelines and responsibilities for airlines operating domestic and international flights to and from India.
48-Hour “Look-In” Option
Passengers booking directly through an airline’s official website will benefit from a 48-hour window to cancel or amend their tickets without cancellation charges. During this period, only the fare difference applies if the booking is modified. However, this facility does not apply to domestic flights departing within seven days or international flights departing within 15 days of booking.
Name Correction Without Penalty
To address frequent complaints over typographical errors, airlines are now prohibited from charging passengers for correcting names, provided the correction pertains to the same individual and is reported within 24 hours of booking.
Defined Refund Timelines
Refunds must now be processed within strict timelines:
- Credit card bookings: Refunds within 7 days of cancellation, credited back to the original card account.
- Cash bookings: Immediate refunds at the airline office where the ticket was purchased.
- Travel agent/portal bookings: Airlines remain responsible for refunds, which must be completed within 14 working days, since agents act as authorised representatives of carriers.
Passenger-Friendly Provisions
- Airlines cannot impose credit shells by default; the choice rests solely with passengers.
- Statutory taxes and fees — including User Development Fee (UDF), Airport Development Fee (ADF), and Passenger Service Fee (PSF) — must be refunded in cases of cancellation, no-show, or non-utilisation of tickets.
- Refund rules apply across all fare categories, including promotional and non-refundable basic fares.
Transparency in Charges
Airlines are required to clearly display the admissible refund amount and its breakdown either on the ticket or through a separate document. Cancellation charges must be prominently published on airline websites and cannot exceed the sum of the basic fare and fuel surcharge, excluding any separately disclosed travel agent service fees.
Consumer Protection Focus
By standardising timelines, limiting discretionary charges, and mandating transparency, the DGCA aims to balance consumer rights with operational realities faced by carriers. The move is expected to significantly reduce passenger grievances and bring uniformity to refund practices across the aviation sector.
