The Directorate General of Civil Aviation (DGCA) has unveiled a sweeping overhaul of airline ticketing norms, introducing a 48-hour free cancellation and amendment window, capping cancellation fees, enforcing stricter refund timelines and mandating clearer disclosures. The new rules, issued on February 24, will come into effect from March 26.
The DGCA said ticket refunds had become “a major source of grievance”, with complaints largely centred on delays, partial repayments and airlines pushing vouchers instead of cash refunds.
While the regulator generally avoids intervening in airlines’ commercial practices, it noted that the rising volume of complaints required “affirmative action to safeguard the interests of the travelling public”.
Under the revised framework:
Passengers booking directly through an airline’s website can cancel or amend tickets within 48 hours of booking without paying any fee.
This applies only if the flight is at least seven days away for domestic travel and 15 days away for international travel.
After the 48-hour window, standard cancellation or amendment charges will apply.
Airlines are also barred from charging for minor spelling corrections in a passenger’s name if the error is reported within 24 hours of booking on the airline’s website.
To curb delays, the DGCA has laid down strict timelines:
Refunds for credit card payments must be processed within seven working days.
For tickets booked via travel agents or online portals, airlines remain responsible for ensuring refunds are completed within 14 working days.
Cash payments must be refunded immediately at the airline office where the ticket was purchased.
Importantly, airlines must clearly disclose the refund amount and provide a detailed break-up either on the ticket or through a separate document. This information must also be displayed on their websites.
In a significant relief for flyers, the DGCA has capped cancellation charges. Under no circumstances can an airline or its agent levy a cancellation fee exceeding the basic fare plus fuel surcharge.
Any additional service or agent fee must be transparently disclosed at the time of booking.
Passengers may opt for a credit shell — a voucher for future travel — instead of a cash refund if they prefer. However, airlines cannot force vouchers in place of refunds.
Special provisions have been introduced for medical emergencies. If a passenger or an immediate family member on the same booking is hospitalised during the travel period, airlines must offer either a refund or a transferable credit shell valid for at least one year. In other cases, refunds will follow certification by the airline or a DGCA-empanelled aerospace medicine specialist.
The regulator has warned that non-compliance will invite penalties under the Aircraft Rules, 1937, signalling a tougher enforcement stance aimed at making cancellations and refunds more transparent, timely and passenger-friendly.
