India’s aviation regulator has introduced sweeping reforms to airline ticket cancellation and refund policies, aiming to address long-standing passenger grievances. The Directorate General of Civil Aviation (DGCA) has mandated a 48-hour free cancellation and amendment window, imposed caps on cancellation charges, standardised refund timelines, and formalised the option for passengers to choose vouchers in place of refunds.
The new regulation, dated February 24, will come into force from March 26. According to the Directorate General of Civil Aviation (DGCA), ticket refunds have become “a major source of grievance” among air travellers, with complaints primarily relating to delays, partial reimbursements, and airlines pushing vouchers instead of returning money.
The regulator noted that while it generally does not intervene in airlines’ commercial decisions, the growing number of complaints necessitated “some affirmative action to safeguard the interests of the travelling public”.
The aviation watchdog stated that refund-related complaints have surged in recent years, making them one of the most common sources of passenger dissatisfaction. Issues frequently reported include:
Delayed refunds
Partial reimbursements
Automatic issuance of travel vouchers instead of cash refunds
Although the DGCA traditionally refrains from interfering in airlines’ pricing and commercial strategies, it emphasised that the volume of grievances required regulatory intervention to protect passenger interests.
Under the revised framework, passengers booking directly through an airline’s official website can cancel or modify their tickets within 48 hours of booking without paying additional charges, subject to certain conditions:
The flight must be at least seven days away for domestic travel
The flight must be at least 15 days away for international travel
The DGCA clarified:
“beyond 48 hours of the initial booking, this option is not available and the passenger has to pay the applicable cancellation fees for amendment”.
This provision aims to give travellers flexibility soon after booking while preventing misuse close to departure dates.
To reduce delays, the DGCA has set clear refund timelines:
Credit card payments: Refund must be processed within seven working days
Tickets booked through travel agents or online portals: Airlines must complete refunds within 14 working days
Cash payments: Refund must be issued immediately at the airline office where the ticket was purchased
Even when tickets are booked via third-party platforms, the airline remains responsible for ensuring timely refunds.
The new rules limit how much airlines can deduct as cancellation fees.
“Under no circumstances shall the airline or its agent levy a cancellation charge exceeding the basic fare plus fuel surcharge,” the regulation states.
Additionally:
Any service or agent fees must be fully disclosed at the time of booking
Airlines must clearly indicate the refund amount and provide a detailed breakdown
This information must also be displayed on airline websites
These measures are intended to improve pricing transparency.
Passengers will have the choice to opt for a credit shell (voucher for future travel) instead of a monetary refund, if they prefer.
Airlines are also prohibited from charging for spelling corrections in a passenger’s name, provided the error is reported within 24 hours of booking directly on the airline’s website.
In cases where a passenger or an immediate family member listed on the same passenger name record is hospitalised during the travel period:
Airlines must provide either a refund or a transferable credit shell
The credit shell must remain valid for at least one year
In other medical cases, refunds will be processed after certification of fitness to travel by either the airline’s medical team or a DGCA-empanelled aerospace medicine specialist.
These provisions introduce compassionate safeguards for unforeseen health emergencies.
The DGCA has made it clear that the updated regulations are designed to make cancellations and refunds “more transparent, timely, and passenger-friendly”.
Non-compliance by airlines will invite penalties under the Aircraft Rules, 1937.
Flight must be least 7 days away for domestic travel and 15 days for international travel
Airlines to refund money within 14 days for tickets booked online or through agents
For credit card users, airlines to initiate refund process within seven working days
Announcement follows growing volume of passenger complaints to safeguard public interest
The DGCA’s latest reforms mark one of the most comprehensive updates to airline cancellation and refund policies in recent years. By introducing a 48-hour free cancellation window, capping cancellation charges, and enforcing strict refund timelines, the regulator has prioritised transparency and passenger rights.
With the new rules set to take effect from March 26, airlines will need to align their booking systems and customer service protocols accordingly. For travellers, the changes promise greater flexibility, faster refunds, and stronger protection against hidden charges—potentially restoring trust in airline ticketing practices.