In a major relief for air travellers, the Directorate General of Civil Aviation (DGCA) has revised the air ticket refund rules in India. Under the updated policy, passengers can now cancel or modify their flight tickets within 48 hours of booking without paying additional charges, provided certain conditions are met.
According to the aviation regulator, these revised guidelines will come into effect from March 26, 2026. The new rules aim to make the refund process more transparent and passenger-friendly while ensuring airlines follow clear guidelines.
Below are the key refund and cancellation rules that passengers should know.
Refund Rules for Tickets Booked Using Credit Card
For passengers who book air tickets using a credit card, airlines are required to process the refund within seven days of cancellation. The refunded amount must be credited directly to the same credit card account used for the booking.
This rule ensures faster refunds and prevents unnecessary delays for passengers who choose digital payment methods.
Refund Rules for Tickets Purchased Through Cash
If a ticket is purchased through cash payment, the refund must be provided immediately at the airline office from where the ticket was bought.
This rule is intended to ensure that passengers who make offline purchases do not face delays in receiving their refunds.
Refund Rules for Tickets Booked Through Travel Agents
Many passengers book flights through travel agents or online travel portals. In such cases, the responsibility of issuing the refund still lies with the airline because travel agents act as the airline’s authorized representatives.
Under the revised rules, airlines must ensure that the refund process is completed within 14 working days when a ticket is cancelled.
Refund of Airport and Government Charges
The new rules also clarify that airlines must refund all statutory taxes and airport charges if a ticket is cancelled or not used.
This includes:
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User Development Fee (UDF)
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Airport Development Fee (ADF)
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Passenger Service Fee (PSF)
Importantly, these charges must be refunded even if the basic airfare is non-refundable, including tickets purchased under promotional or special fares.
48-Hour “Look-In Option” for Free Cancellation
One of the most important changes introduced by the regulator is the 48-hour “look-in option.”
Under this provision, passengers can cancel or modify their ticket within 48 hours of booking without paying any additional cancellation charges.
However, if the passenger changes the flight to a different one, they may have to pay the difference in fare if the new flight costs more.
Conditions for the 48-Hour Rule
This facility is available only under certain conditions:
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The departure date of the domestic flight must be at least 7 days away from the booking date.
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For international flights, the departure must be at least 15 days away.
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The ticket must be booked directly through the airline’s official website.
If more than 48 hours have passed after booking, normal cancellation charges will apply.
Credit Shell Refund Option
Airlines sometimes keep cancelled ticket amounts in a credit shell, allowing passengers to use the amount later for future travel.
Under the revised rules, this option will now be entirely up to the passenger. Airlines cannot automatically place the refund in a credit shell unless the passenger agrees to it.
Limit on Cancellation Charges
The aviation regulator has also placed a clear limit on cancellation charges.
Airlines or their agents cannot charge cancellation fees that exceed the basic airfare plus the fuel surcharge. This rule helps prevent excessive cancellation penalties.
However, any service charges taken by travel agents may still apply, provided they were clearly disclosed to the passenger at the time of booking.
Airlines Must Clearly Display Refund Policies
To ensure transparency, the regulator has directed airlines to clearly display the refund amount that passengers will receive after cancellation.
This information must be provided:
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On the ticket itself, or
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Through a separate document issued at the time of booking, and
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On the airline’s official website.
Additionally, cancellation charges must be clearly shown during the booking process so passengers understand the terms before purchasing a ticket.
Final Thoughts
The updated refund policy introduced by the Directorate General of Civil Aviation is designed to make air travel more passenger-friendly. The introduction of a 48-hour free cancellation window, faster refunds, and stricter transparency rules will help travelers avoid unnecessary financial losses when plans change.
Passengers planning to book flights after March 26, 2026 should carefully review these updated rules to take full advantage of the new benefits.
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