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Air India's 2-hour cancellation cost it ₹96,000. What this ruling means for every flyer

Air India's 2-hour cancellation cost it ₹96,000. What this ruling means for every flyer

A last-minute cancellation turned a family trip into a costly ordeal — and the consumer panel made Air India pay for it.

Business Today Desk
Business Today Desk
  • Updated Jul 21, 2026 10:42 AM IST
Air India's 2-hour cancellation cost it ₹96,000. What this ruling means for every flyerAir India Flight's last minute cancellation costs them ₹96000

A district consumer commission in Bhopal has directed Air India to compensate six passengers a total of ₹96,000 after the carrier cancelled their flight just two hours before departure, calling the airline’s conduct a deficiency in service. 

About the case

According to the petition filed with the Bhopal District Consumer Disputes Redressal Commission, six passengers, including Dr Shailendra and Sushma Nigam, had booked Air India tickets on May 11, 2024, from Bhopal to Srinagar. The combined airfare amounted to approximately ₹1.18 lakh. The travellers had made extensive advance reservations in Kashmir—hotels, a houseboat and local transport for destinations including Pahalgam and Gulmarg.

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The passengers had also pre-booked onward travel: a flight from Srinagar to Delhi and AC‑1 and AC‑2 class Vande Bharat Express train tickets from Delhi to Bhopal costing around ₹54,670. On the day of travel, Air India reportedly notified them about the cancellation only two hours before the scheduled departure, by which time the group had already left for the airport.

Air India’s response

Air India told the commission that the cancellation was forced by a bird strike and said it complied with Directorate General of Civil Aviation (DGCA) rules by providing seats on the next day’s flight. The airline declined to compensate for consequential losses, the petitioners (Yogesh Dutt, Anjum Firoz and Preeti Mudgal) said.

Commission’s findings

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A three‑member bench of the Bhopal commission — presided over by Yogesh Datt Shukla, with members Anjum Firoz and Preeti Mudgal — rejected Air India’s defence. The bench observed that the last‑minute cancellation had fully disrupted the travellers’ pre‑planned itinerary, resulting in both financial loss and mental anguish.

READ MORE: Blame it on the IndiGo fiasco? Air ticket refund complaints up 233% in 2025

Relief demanded 

The consumer panel found the airline at fault and ordered Air India to pay each of the six passengers ₹16,000, totalling ₹96,000. The order covers expenses and the inconvenience suffered due to the abrupt cancellation and consequent loss of bookings in Kashmir.

Implications

This ruling shows that consumer courts will make airlines pay for extra losses caused by late cancellations, even if the ticket price has been refunded. Air India has not yet issued a public statement on whether it will challenge the commission’s order.

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Business Today Desk
Business Today Desk

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Published on: Jul 21, 2026 10:42 AM IST