Flight ticket refund rules eased: 48-hour free cancellation, faster refunds in India

Airlines should not levy any additional charge for name correction for the same person when the error is reported by the passenger within 24 hours of booking

  • PUBLISHED: Thu 26 Feb 2026, 4:26 PM

Indian air travellers will now benefit from faster, more transparent airline ticket refunds under new rules issued by the Ministry of Civil Aviation.

Passengers can cancel or change air tickets without paying an additional charge within 48 hours of booking, subject to certain conditions, as the aviation authority DGCA revised the ticket refund norms for airlines.

According to the Directorate General of Civil Aviation (DGCA), airlines should not levy any additional charge for name correction for the same person when the error is reported by the passenger within 24 hours of booking, if the ticket is booked directly through the airline's website.

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The Civil Aviation Requirement (CAR), effective immediately, sets clear timelines and obligations for airlines operating domestic and international flights to and from India.

CAR prescribed minimum requirements

In case the ticket is purchased through credit card payments, refund shall be made by the airlines within seven days of the cancellation to the account of credit card holder. In case of cash transactions, refund shall be made immediately by the airlines office from where the ticket was purchased.

If passengers purchase tickets 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.

The airline shall provide a "Look-in option" for 48 hours after booking the ticket. During this period, passengers 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 being amended.

This facility is not available for flights departing less than 7 days for domestic or 15 days for international travel from the booking date when tickets are booked directly through the airline website.

After 48 hours from booking, this option is unavailable and passengers must pay the relevant cancellation fees for amendments.

The option to hold the refund amount in a credit shell is the passenger's choice, not the airline's default practice. 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 apply to all types of fares offered, including promos/special fares and non-refundable basic fares.

As per the circular, the airlines should clearly indicate the refund amount admissible on ticket cancellation. The amount and its break-up may be shown on the ticket or a separate form. The refund policy and amount must also be displayed on the airlines' websites.

Cancellation charges must be indicated prominently at the time of booking.

Under no circumstances shall the airline or its agent charge cancellation fees exceeding the basic fare plus fuel surcharge. This excludes any charges levied by the travel agent, which must be fully disclosed at the time of booking. The airline is responsible for ensuring this through contracts with travel agents and portals.