India’s civil aviation regulator has revamped flight ticket refund and cancellation rules, giving passengers a 48-hour penalty-free window to cancel or modify bookings, while airlines are now required to process refunds within 14 working days part of wider efforts to make air travel more transparent and customer-friendly.
In a major regulatory update issued on February 24, 2026, the Directorate General of Civil Aviation (DGCA) introduced a “look-in option”, mandating that airlines must allow passengers to cancel or amend flight tickets without any additional cancellation or change fee within 48 hours of booking apart from any fare difference that applies if the new flight is costlier.
This option, seen as a cushion for travellers who book in haste or spot a better fare, comes with an important caveat: it applies only when the scheduled departure is at least seven days away for domestic flights or 15 days for international flights, and for tickets booked directly on the airline’s official website.
Alongside the 48-hour rule, the DGCA has tightened refund timelines. All refunds whether for direct bookings or those made via travel agents and online portals must be completed within 14 working days of cancellation.
Refunds for credit card payments must be processed within seven working days, while cash refunds at airline offices should be issued immediately at the point of purchase. Airlines must also refund all statutory taxes and passenger-related charges even on non-refundable base fares.
To reduce friction over simple mistakes, the regulator prohibits airlines from charging extra for correcting minor name errors if reported within 24 hours of booking again for direct purchases made on the carrier’s website. These changes aim to address common complaints from flyers and reduce hidden costs often absorbed by unsuspecting customers.
Officials also introduced clarity on medical emergencies. If a passenger or an immediate family member listed on the same booking is hospitalised during the planned travel period, airlines may offer either a full refund or a transferable credit shell valid for at least one year. In other cases, refunds will be processed after a fitness-to-travel assessment by a DGCA-empanelled aerospace medicine specialist.
From Complaints to Policy: Why This Matters
The latest reforms arrive amid significant passenger dissatisfaction with refund delays and ambiguous airline policies, particularly following disruptions in December 2025 when delays in refunds after mass flight cancellations dominated consumer grievance reports.
According to DGCA data, scheduled airlines received over 29,000 passenger-related complaints in that month alone, with 7.5 per cent linked to refund issues, highlighting the scale of the problem.
Previously, many travellers found themselves in a refund limbo, often being pushed into airline credit shells instead of getting their money back a practice that, the regulator noted, would no longer be the default option. The updated rules make it clear that passengers can opt for refunds outright, which must be honoured promptly, and the responsibility for processing refunds rests squarely with the airline even if the booking was made through intermediaries.
Consumer groups and advocates have broadly welcomed the changes as a victory for passengers’ rights, noting that the extended look-in period and clear refund deadlines align India’s norms more closely with international standards for consumer protection in aviation.
Some travel platforms and industry stakeholders have also indicated that while implementation will require back-end system updates, the transparency and clarity promised could lead to greater customer confidence in online bookings.
Industry Reaction and Compliance Challenges
Airlines and travel portals have had mixed reactions. While many carriers have acknowledged the spirit of the reforms, some have cautioned about operational challenges, especially in synchronising refund processes across third-party booking platforms, where historically accountability has been diffuse.
However, the DGCA’s directive is unequivocal that airlines not agents or portals are ultimately responsible for ensuring refunds are issued within the prescribed timelines, and that compliance will be monitored under the Aircraft Rules, 1937.
Industry analysts have pointed out that the rule will likely encourage travellers to book directly with airlines to fully benefit from the look-in option, though digital intermediaries remain popular for price comparison. Some insiders also argue that while the 48-hour window is generous, not all travellers will necessarily benefit — for example, those booking close to departure or via travel agents may still face traditional fees and longer processing times.
Importantly, the reforms come into effect on March 26, 2026, giving carriers and travel platforms a window to adapt their booking engines, refund systems, and customer service protocols to align with the new Civil Aviation Requirements. Travelers planning trips after this date will be among the first cohort to experience the full benefits of the updated rules.
The Logical Indian’s Perspective
At a time when technology and online booking have made travel more accessible than ever, travellers deserve fair, clear, and timely recourse when plans change. The DGCA’s updated refund and cancellation norms represent a positive step toward consumer empowerment, especially for ordinary citizens who may not be frequent flyers but still face financial stress from unexpected charges or delayed refunds.
By establishing reasonable timelines, reducing hidden fees, and clarifying accountability, the regulator has signalled that passengers’ rights matter in India’s rapidly growing aviation ecosystem.
However, laws and rules are only as effective as their ground-level implementation. Ensuring that airlines, travel portals, and intermediaries align their systems and adhere strictly to the new norms will be essential for real change. Enforcement mechanisms, regular audits, and transparent grievance redressal will ultimately determine whether these reforms deliver on their promise.
