DGCA revises Air Ticket Refund rules to address passenger complaints - Here's the full details

No additional charges for cancelling or changes within 48 hours of booking, with conditions, and other rules in the new revision for air ticket refunds, with effect from 26 March 2026.

Representative image. Photo by Nick Morales on Unsplash

Considering the large number of complaints against the refund practices by airlines, the Directorate General of Civil Aviation, Government of India (DGCA), has issued new rules for air ticket refunds. These new rules come into effect from 26 March 2026.

The DGCA has listed 13 rules in its newly revised Civil Aviation Requirements (CAR) for the Refund of Airline Tickets to passengers, the DGCA (details below). These new rules come into effect from 26 March 2025.

As per one of the DGCA's new rules, the airlines have been asked to provide a ‘Look-in option’ for a period of 48 hours to passengers after booking tickets.

During this 48 hours period, you can cancel or amend the ticket without any additional charges, except for the normal prevailing fare for the revised flight for which the ticket is sought to be amended.

This facility will not be available for:

• A domestic flight whose departure is less than 7 days from date of booking the ticket, when the ticket is booked directly through the airline’s website
• An international flight whose departure is less than 15 days from date of booking the ticket, when the ticket is booked directly through the airline’s website

Beyond 48 hours from the initial booking time, you'll have to pay the relevant cancellation fees for cancelling or making changes.

In addition to that, other rules change how airlines handle the refund amount, for example, the airlines can not hold the refund amount in a credit shell by default, but it will depend on the passenger's choice whether to do so. Read the full details below, for all the newly revised rules in DGCA's latest revision.

Details of the new ticket refund rules by the DGCA

The DGCA has published its newly revised Civil Aviation Requirements (CAR) Series 'M' Part II, in Section 3 - Air Transport, dated 24 February 2026, with the subject: Refund of Airline Tickets to Passengers of Public Transport, which is available on its official website.

This CAR prescribes minimum requirements for refund of ticket purchased by persons/passengers with respect to air transport undertakings including scheduled domestic/non-scheduled operators/ foreign carriers operating to/from India.

Here are the new rules mentioned in this latest CAR dated 24 February 2026 by the DGCA, effective from 26 March 2025.

1. In case of credit card payments, refund shall be made by the airlines within seven days of the cancellation to the account of credit card holder.
2. In case of cash transactions, refund shall be made immediately by the airlines office from where the ticket was purchased.
3. In case of purchase of ticket through travel agent/portal, onus of refund shall lie with the airlines as agents are their appointed representatives. The airlines shall ensure that the refund process is completed within 14 working days.
4. The airlines shall refund all statutory taxes and User Development Fee (UDF)/Airport Development Fee (ADF)/Passenger Service Fee (PSF) to the passengers in case of cancellation/non-utilisation of tickets/no show. This provision shall also be applicable for all types of fares offered including promos/special fares and where the basic fare is non- refundable.
5. The airline shall provide "Look-in option" for a period of 48 hours after booking ticket. During this period passenger can cancel or amend the ticket without any additional charges, except for the normal prevailing fare for the revised flight for which the ticket is sought to be amended. This facility shall not be available for a flight whose departure is less than 7 days for domestic flight and 15 days for international flight from booking date when ticket is booked directly through airline website. Beyond 48 hours of initial booking time, this option is not available and the passenger has to pay the relevant cancellation fees for amendment.
6. The option of holding the refund amount in credit shell by the airlines shall be the prerogative of the passenger and not a default practice of the airline.
7. The airlines should indicate in an unambiguous manner the amount of refund of money admissible on cancellation of a ticket. For this purpose, the amount and its break-up may be indicated on the ticket itself or through separate form used for the purpose, and the policy and amount of refund shall also be displayed by the airlines on their respective websites.
8. Cancellation charges must be indicated prominently at the time of booking.
9. Under no circumstances, the airline or its agent shall levy cancellation charge more than the basic fare plus fuel surcharge. This will exclude any charges levied by the travel agent, which have been fully disclosed at the time of booking. It shall be the responsibility of the airline to ensure this through their contracts with travel agents/portals.
10. The airlines shall not levy any additional charge to process the refund.
11. Foreign carriers operating to/from India shall refund the tickets in accordance with regulations of their country of origin. The mode of refund shall be in accordance with Para 3 (a), (b) & (c) of this CAR.
12. Airline shall not levy any additional charge for correction in name of the same person when the error is pointed out by the passenger within 24 hours of making the booking, when ticket is booked directly through airline website.
13. In the event of ticket cancellations due to a medical emergency, where the passenger or a family member listed on the same PNR gets admitted/hospitalised during the travel period, airlines may provide either a refund or a credit shell. For all other situations, refunds will be issued once an opinion on the passenger's fitness to travel certificate is received from an airline's Aerospace Medicine specialist/ DGCA empanelled Aerospace Medicine specialist.

In the above DGCA's CAR, it has been noted that the issue of refund of tickets by airlines has become a major source of grievance among airline passengers.

It notes that a large number of complaints are regularly received, which are about delays in refund of unused tickets and about the amount refunded by the airlines against cancelled tickets.

It also notes about complaints against the policies of airlines, such as, not refunding the ticket amount but instead adjusting the refundable amount against tickets to be purchased for a future travel in the same airline, with only a limited period of time validity for claiming it.

So, to address the growing dissatisfaction among passengers, regarding such refund procedures adopted by some airlines, the Government has decided to fix some minimum bench marks, as far as the refund policy is concerned.

References

1. Civil Aviation Requirements - SECTION 3 - AIR TRANSPORT, SERIES M - PASSENGER FACILITATION, Part II : Refund of Airline tickets to passengers of public Transport Undertakings, Rev. 3 dated 24.02.2026 [archived]