DGCA introduces 48-hour free cancellation window and 14-day airline refund rule

Indian airlines face stricter refund timelines under revised DGCA Civil Aviation Requirements

India’s aviation regulator has introduced a 48-hour penalty-free cancellation and amendment window for flight bookings and mandated that airlines complete refunds within 14 working days, tightening consumer protection norms in one of the world’s fastest-growing air travel markets.

The Directorate General of Civil Aviation (DGCA), in revised Civil Aviation Requirements issued this week, said the changes were prompted by a rising volume of passenger complaints, particularly around delayed refunds and lack of clarity in cancellation policies.

The regulator acknowledged that it does not ordinarily intervene in airlines’ commercial practices but said the surge in grievances required “affirmative action to safeguard the interests of the travelling public”.

Penalty-free cancellation window introduced

Under the new framework, passengers who book tickets directly through an airline’s website can cancel or modify their booking within 48 hours without incurring cancellation or amendment fees. If a traveller switches to a higher fare, only the fare difference can be charged.

The concession, however, applies only when the flight is at least seven days away for domestic travel and 15 days away for international routes. Beyond the 48-hour window, standard airline cancellation policies will apply.

Refund timelines standardised across airlines

The DGCA has also standardised refund timelines. Airlines must initiate refunds for credit card payments within seven working days. For tickets booked through travel agents or online portals, airlines remain responsible for ensuring refunds are completed within 14 working days, even if the booking was made via an intermediary.

“In case of purchase of ticket through travel agent or portal, onus of refund shall lie with the airlines as agents are their appointed representatives,” the regulator said in its notification.

Cash payments must be refunded immediately at the airline office where the ticket was purchased.

In a further move to cap passenger costs, the DGCA said airlines or their agents cannot levy cancellation charges exceeding the basic fare plus fuel surcharge. Airlines must also clearly disclose the refund amount and its break-up at the time of cancellation.

The regulator has waived charges for correcting minor spelling errors in passenger names, provided the error is reported within 24 hours of booking and the ticket was purchased directly through the airline’s website.

Additional safeguards and industry context

Special provisions have also been introduced for medical emergencies. If a passenger or an immediate family member travelling on the same passenger’s 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 certification by an airline-appointed or DGCA-empanelled aerospace medicine specialist.

The tightening of refund norms follows operational disruptions in late 2025, including widely reported delays in refund processing after flight cancellations. According to DGCA data cited in earlier industry reports, refund-related grievances accounted for a significant share of passenger complaints in December 2025.

India’s aviation sector continues to expand rapidly. Industry data show domestic airlines carried more than 16 crore passengers in 2025, underscoring the scale of consumer exposure to booking and refund disputes.

With the revised rules set to take effect next month, airlines will need to adjust booking systems and refund processes to comply. For passengers, the new framework offers a limited rethink window — and a clearer path to timely refunds.