Air travel refund norms: DGCA introduces 48-hour free cancellation window, tightens refund timelines for airlines

In a move aimed at strengthening passenger rights, aviation regulator Directorate General of Civil Aviation (DGCA) has revised ticket refund norms, introducing a 48-hour penalty-free cancellation and modification window for air travellers. The amended Civil Aviation Requirements (CAR), issued on February 24, seek to make airline policies more transparent and passenger-friendly amid rising complaints over delayed refunds.

Look-in period

Under the new framework, airlines must provide a mandatory “look-in period” of 48 hours from the time of booking. During this window, passengers can cancel or amend their tickets without incurring additional cancellation or change fees. However, if a passenger chooses to switch to a different flight, the prevailing fare difference will still apply.

The benefit, however, comes with conditions. The 48-hour flexibility will not apply to tickets booked directly on airline websites if the scheduled departure is within seven days for domestic flights or 15 days for international flights from the date of booking. After the 48-hour window lapses, standard airline cancellation and rescheduling charges will be applicable.

Charging extra fees

In another key change, DGCA has barred airlines from charging extra fees for correcting a passenger’s name — provided the error is reported within 24 hours of booking and the ticket was purchased directly from the airline’s website. The move is expected to address frequent complaints from passengers over minor name discrepancies leading to additional charges.

The regulator has also clarified accountability in cases where tickets are booked via travel agents or online portals. Even if bookings are made through third-party platforms, airlines will remain responsible for processing refunds, as agents act as their authorised representatives. Airlines have been directed to complete the refund process within 14 working days.

Revised norms

The revised norms also provide clarity for cancellations due to medical emergencies. If a passenger or a family member listed on the same PNR is hospitalised during the travel period, airlines may offer either a full refund or issue a credit shell for future travel. In other medical cases, refunds will be processed after a fitness assessment by an airline-appointed or DGCA-empanelled aerospace medicine specialist.

The changes come against the backdrop of mounting grievances related to refund delays. The issue gained prominence during flight disruptions involving IndiGo in December 2025, after which the civil aviation ministry instructed the airline to expedite pending refund claims.

DGCA data show that scheduled airlines received 29,212 passenger-related complaints in December 2025 alone, with 7.5% linked to refund-related issues. During the same month, domestic carriers transported over 1.43 crore passengers. For the full calendar year 2025, Indian airlines carried more than 16.69 crore passengers, reflecting the scale and growth of the country’s aviation sector.

With India emerging as one of the fastest-growing aviation markets globally, the revised CAR seeks to balance operational realities with consumer protection. By formalising a short cancellation window and tightening refund timelines, DGCA aims to enhance transparency, improve passenger confidence, and reduce friction in ticketing and post-booking processes.