DGCA rolls out 48-hour free cancellation window and stricter refund rules

DGCA has revamped airline ticketing rules, adding a 48-hour free cancellation window, capping fees, tightening refund timelines and introducing passenger-friendly provisions for emergencies

The Directorate General of Civil Aviation (DGCA) has overhauled airline ticket rules, introducing a 48-hour free cancellation and amendment window, capping cancellation charges, mandating strict refund timelines, and allowing passengers to opt for vouchers in case of cancellations.

 

The new regulation, dated February 24, will take effect from March 26. The DGCA said the changes were necessary as ticket refunds have become “a major source of grievance” among airline passengers, with complaints largely centred on delays, partial refunds, and the practice of offering vouchers instead of returning money.

 

The regulator added that while it does not usually interfere in airlines’ commercial practices, the rising volume of complaints required “some affirmative action to safeguard the interests of the travelling public”.

   

Under the new rules, passengers who book tickets directly on an airline’s website can cancel or amend their tickets within 48 hours without paying extra fees, provided the flight is at least seven days away for domestic travel and 15 days away for international travel. The DGCA clarified that “beyond 48 hours of the initial booking, this option is not available and the passenger has to pay the applicable cancellation fees for amendment”.

 

Refund timelines have been standardised to curb delays. Airlines must process refunds for credit card payments within seven working days. For tickets purchased through travel agents or online portals, airlines remain responsible for completing refunds within 14 working days. Cash payments must be refunded immediately at the airline office where the ticket was purchased.

 

The DGCA has also capped cancellation charges. “Under no circumstances shall the airline or its agent levy a cancellation charge exceeding the basic fare plus fuel surcharge,” the rule said, adding that any agent fees must be fully disclosed at the time of booking.

 

Airlines must clearly indicate the refund amount and its breakdown, either on the ticket or through a separate form, and display this information on their websites.

 

Passengers will also have the option to choose a credit shell — a voucher for future travel — if they prefer it over a refund. Airlines cannot charge for correcting a spelling error in a passenger’s name if it is reported within 24 hours of booking directly on the airline’s website.

 

Special provisions have been introduced for medical emergencies. If a passenger or an immediate family member on the same passenger name record 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 be processed after an airline or a DGCA-empanelled aerospace medicine specialist certifies the passenger’s fitness to travel.

 

The DGCA said the revisions are aimed at making ticket cancellations and refunds “more transparent, timely, and passenger-friendly”, and warned that non-compliance will attract penalties under the Aircraft Rules, 1937. 

Refund reset

• Flight should be least 7 days away for domestic travel and 15 days for international travel
• Airlines to refund money within 14 days for tickets booked online or through agents
• For credit card users, airlines to initiate refund process within seven working days
• With growing volume of complaints, DGCA made this announcement to safeguard public interest