New Delhi, India: The Directorate General of Civil Aviation (DGCA) has formally amended India’s Civil Aviation Requirements (CAR) governing airline ticket refunds and cancellations, introducing a suite of consumer-centric provisions that take effect from March 26, 2026. The changes aim to improve transparency, expedite refunds and provide passengers greater flexibility in managing airline bookings.
Under the revised framework, airlines are required to offer a 48-hour “look-in option” after a ticket is booked. During this period, passengers who have booked directly through an airline’s official website can cancel or amend their tickets without incurring any additional charges, except for the difference in fare when moving to a higher-priced flight. The facility is conditioned on the flight departure being at least seven days away for domestic travel and 15 days away for international travel from the booking date. After the 48-hour window lapses, standard cancellation and change fees apply.
The amended rules specifies time-bound refund obligations for airlines:
- Credit card refunds must be completed within seven days of cancellation.
- Cash refunds must be issued immediately at the point of sale.
- For tickets bought through travel agents or online portals, the onus of refund lies with the airline, and refunds must be processed within 14 working days.
Fee Transparency Rules and Special Provisions:
- No extra refund processing fees: Airlines cannot levy additional charges for processing refunds.
- Cap on cancellation charges: Fees cannot exceed the basic fare plus fuel surcharge, excluding fully disclosed agent service fees at the time of booking.
- Mandatory disclosure: Airlines must clearly display cancellation charges and the exact refundable amount at the time of booking and prominently on tickets or their websites.
- Free name corrections: Spelling errors must be corrected without extra charge if reported within 24 hours of booking directly through the airline’s platform.
- Refund of statutory taxes: All statutory taxes and passenger service charges including User Development Fee (UDF), Airport Development Fee (ADF), and Passenger Service Fee (PSF) must be refunded, even on non-refundable tickets.
- Medical emergency provision: In case of hospitalisation or medical emergencies involving the passenger or a family member on the same booking, airlines must offer either a full refund or a travel credit, subject to documentation.
- Fitness-to-travel cases: Where medical fitness is in question, refunds may be processed upon submission of certification from an airline aerospace medicine specialist or a DGCA-empanelled expert.
The new provisions apply to all scheduled domestic carriers, non-scheduled operators and foreign airlines operating to and from India. The DGCA’s revisions come against the backdrop of rising passenger complaints regarding delayed refunds and opaque cancellation policies, and seek to set minimum standards of transparency and accountability across the industry.
