Airlines Can’t Charge Cancellation Fee Within 48 Hours Under New DGCA Norms

The Directorate General of Civil Aviation has issued new refund norms for airline tickets, introducing a “look-in option” for a period of 48 hours after booking. 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 sought to be amended.

The new norm, as per the aviation regulator, was brought in to curb the “grievances among airline passengers” regarding delays in the refund of unused tickets and the amount refunded by airlines against cancelled tickets.

The problem became increasingly visible at the time of mass ticket cancellations by IndiGo in December, which was partly caused by a new pilot roster. While the airline issued thousands of crores in ticket refunds, passengers took to social media, sharing screenshots of different cancellation charges airlines sought from them.

Data from the Directorate General of Civil Aviation shows that scheduled airlines received 29,212 passenger complaints in December 2025, of which about 7.5% were related to refunds. In the same month, domestic airlines carried more than 1.43 crore passengers.

Across the entire year, Indian carriers transported over 16.69 crore passengers, highlighting the vast scale of operations in one of the fastest-growing aviation markets globally.

“While the government is committed not to interfere in the commercial practices of the airlines, the volume of complaints necessitates some affirmative action to safeguard the interest of the travelling public,” the aviation regulator said while releasing the new guidelines dated February 24. These will come into effect from March 26.

DGCA said that the matter has been discussed in several meetings with airlines, with no improvement in the system adopted by them for ticket refunds.

“It is now considered that the onus rests with the government to fix some minimum benchmarks, as far as the refund policy is concerned, in order to stem the growing dissatisfaction among passengers regarding the refund procedures adopted by some airlines,” it further added.

New Norms for Air Ticket Cancellations

Under the new norms, air travellers must be given a “look-in option” for 48 hours after booking, during which they can cancel or amend the ticket without extra charges, except for any fare difference for the revised flight. However, this option is not available if the flight is scheduled to depart within seven days (domestic) or 15 days (international) from the booking date when booked directly through the airline’s website.

Keeping the refund amount in a credit shell should be the passenger’s choice and not the airline’s default practice. Airlines must clearly indicate the refundable amount and its break-up on the ticket or through a separate form and also display their refund policy on their websites.

Cancellation charges should be clearly shown at the time of booking. Under no circumstances can airlines or their agents charge cancellation fees exceeding the basic fare plus fuel surcharge, excluding any agent charges disclosed at the time of booking. Airlines must also not levy any additional fee for processing refunds.

For credit card payments, airlines must issue refunds within seven days of ticket cancellation to the cardholder’s account. In case of cash payments, the refund should be made immediately at the airline office from where the ticket was purchased.

If a ticket is booked through a travel agent or online portal, the airline remains responsible for processing the refund, as these agents act as their representatives. In such cases, the airline must ensure that the refund is completed within 14 working days.

Airlines are required to refund all statutory taxes and charges such as User Development Fee (UDF), Airport Development Fee (ADF) and Passenger Service Fee (PSF) if a ticket is cancelled, not used, or in case of a no-show.

Foreign airlines operating to and from India must issue refunds according to the regulations of their country of origin, while following the prescribed refund modes.

In cases where tickets are cancelled due to a medical emergency involving the passenger or a family member on the same PNR who is hospitalised during the travel period, airlines may offer either a refund or a credit shell. In other situations, refunds will be processed after a fitness-to-travel certificate is reviewed by an airline’s or DGCA-approved aerospace medicine specialist.