From March 26, the Directorate General of Civil Aviation (DGCA)'s 48-hour free cancellation window will allow passengers to cancel or amend tickets booked directly through airline websites without any additional charges. The DGCA, in its revised Civil Aviation Requirements issued on February 24, has made this a mandatory requirement for all airlines operating in India.
The window applies as long as the flight is at least 7 days away for domestic travel and 15 days for international. Beyond that 48-hour period, standard cancellation charges will apply.
The free cancellation rule is part of a broader overhaul of India airline ticket refund rules that also fix clear timelines—credit card refunds within seven days, immediate cash refunds, and travel agent bookings within 14 working days. Passengers also retain the right to a full cash refund over a credit shell, and taxes are recoverable even on promo fares.
Refund Timelines Now Fixed
The revised DGCA refund rules set clear deadlines for airlines when processing refunds.
- Credit card payments must be refunded within seven days of cancellation.
- Cash transactions are to be settled immediately at the airline office where the ticket was purchased.
- For tickets booked through travel agents or online portals, the airline remains accountable for completing the refund within 14 working days.
- Airlines are also barred from charging passengers anything extra simply for processing a refund.
Taxes Must Be Returned, No Exceptions
Regardless of fare type, airlines are now required to return all statutory taxes and charges, including the User Development Fee (UDF), Airport Development Fee (ADF), and Passenger Service Fee (PSF) in cases of cancellation, no-show, or non-utilization. This applies equally to promotional and special fares, with no exceptions.
Cancellation Charges Must Be Upfront
A key change under the revised airline ticket cancellation policy in India is that airlines must disclose cancellation charges clearly at the time of booking—not buried in fine print.
The refund amount and its full breakup must be communicated plainly, either on the ticket or through a separate document, and the complete refund policy must be visible on the airline's website.
The DGCA has established a strict limit on the amount airlines can charge. Cancellation fees cannot exceed the basic fare plus fuel surcharge under any circumstance. Any additional charges levied by travel agents must have been fully disclosed at the time of booking—and it is the airline's responsibility to ensure such disclosure through its contracts with agents.
Credit Shell Cannot Be Forced
Airlines can no longer treat credit shells as a standard response to cancellations. Whether to accept a refund as a credit shell or receive it back as money is entirely the passenger's decision.
Name Corrections and Medical Situations
If a passenger spots a name error on a ticket booked directly through the airline's website and flags it within 24 hours, the airline cannot charge for the correction.
For medical emergencies where a passenger or a co-traveler on the same PNR is hospitalized during the travel period, airlines may offer a refund or credit shell, subject to medical documentation verified by the airline's aerospace medicine specialist.
Refund Rules for International Airlines in India
International airlines flying to and from India will continue to process refunds under their home country's regulations, but the mode and method of refund must fall in line with the timelines the DGCA has prescribed.
For years, the DGCA held back from directing how airlines manage their refund practices. Passenger dissatisfaction over the free flight cancellation window in India continued to mount, prompting the regulator to conclude that minimum benchmarks could no longer wait.
