DGCA Releases 48-Hour Free Cancellation Window for Flights from March 26

The Directorate General of Civil Aviation (DGCA) has announced a major change in the rules for refund and cancellation of air tickets. As per reports by the Economic Times, this will enable refunds and alterations to flight tickets to be cancelled or amended within 48 hours of purchase without any additional fee. The updated regulations, which were announced on February 24, 2026, will take effect on March 26, 2026. They will refer to the tickets purchased on the carrier websites, specifically, to the flights, the date of which is at least seven days away in the domestic case and 15 days in the international case. In addition to the 48 hours in the look-in, normal cancellation or amendment fees would apply. Such a regulatory change is intended to address historic passenger grievances with respect to opaque refund policies and slow money-back guarantees during cancellations.

New Framework on Refunds and Amendments

The new DGCA regime has required that airlines should provide a 48-hour look-in option where their customers can cancel or change their booking without imposing any extra cost, other than any change in fare in the revised schedule - a common method in worldwide refund policies. This builds on the earlier 24-hour policy, making Indian practices more in line with passenger-oriented policies of more mature markets such as the United States. Another old grievance of delayed refunds has been tackled by the regulator by specifying stricter time limits. Refunds shall be made within 14 working days of cancellation, and the airlines shall break down the amount of the refund into a clear portion when booking them. With credit card payment, one should initiate a refund within seven working days to the initial account, whereas cash payment at airline offices should be refunded instantaneously at the same counters. As per the reports of Business Standard, additional passenger protections include a free name correction window where airlines cannot charge for correcting a passenger's name if an error is reported within 24 hours of booking directly through the airline's platform and special provisions addressing medical emergency cancellations, which require airlines to offer either a refund or a transferable credit shell under specified conditions.

Key DGCA Cancellation and Refund Norms

Rules and Their Implications for Airlines and Passengers

In cases where the ticket was booked by a third-party agent or online travel agency (OTA), it is technically not obligatory to grant the mandatory look-in provision. However, in such cases, the responsibility of making a refund falls on the airline. It is also mandatory that any statutory taxes and passenger levies (User Development Fees (UDF), Airport Development Fees (ADF), and Passenger Service Fees (PSF)) should be refunded by the carriers in all situations of cancellation or non-utilisation, even in cases of promotional or non-refundable base fares. The DGCA observed that the updated norms respond to a spike in passenger complaints reported throughout the carriers, especially following the operational inconveniences of IndiGo in December 2025, when refund delays were highly visible, and aims to harmonise refund procedures among both domestic and global airlines working in India.

Short-Term Flexibility, Long-Term Standards

Through timeline formalisation and explanation of refund responsibility, the regulator expects to minimise the conflict situation regarding refund, increase transparency, and bring the policies of India in line with international best practices. When introduced in an efficient way, the reforms must help build customer confidence in the booking and create more transparent expectations on both sides of the airlines and customers.

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