The Directorate General of Civil Aviation (DGCA) has overhauled airline ticketing norms, introducing a 48-hour free cancellation and amendment window, capping cancellation charges, setting strict refund timelines and allowing passengers to opt for vouchers in case of cancellations.
The new regulation, issued on February 24, will come into effect from March 26. The DGCA said the changes were prompted by a surge in passenger complaints, with ticket refunds emerging as a major grievance. Most complaints related to delayed refunds, partial repayments and airlines offering vouchers instead of cash refunds.
While the regulator noted that it generally does not interfere in the commercial practices of airlines, it said the growing number of complaints required “affirmative action” to safeguard passenger interests.
Under the revised rules, passengers booking tickets directly on an airline’s website can cancel or amend their tickets within 48 hours of booking without paying extra charges. This facility applies if the flight departure is at least seven days away for domestic travel and 15 days away for international travel. Beyond the 48-hour window, passengers will have to pay applicable cancellation or amendment fees.
To address refund delays, timelines have been standardised. Refunds for credit card payments must be processed within seven working days. For tickets booked through travel agents or online portals, airlines must complete refunds within 14 working days. Cash payments are to be refunded immediately at the airline office where the ticket was purchased.
The DGCA has also capped cancellation charges, stating that under no circumstances can airlines or their agents levy a cancellation fee exceeding the basic fare plus fuel surcharge. Any service fees charged by agents must be clearly disclosed at the time of booking.
Airlines are now required to clearly display the refund amount and its detailed break-up, either on the ticket or through a separate form, and publish the information on their websites.
Passengers will have the option to choose a credit shell — a voucher for future travel — instead of a cash refund if they prefer. Additionally, airlines cannot charge for correcting spelling errors in a passenger’s name if the error is reported within 24 hours of booking made directly through the airline’s website.
Special provisions have been introduced for medical emergencies. If a passenger or an immediate family member on the same booking 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 situations, refunds will be processed after certification by the airline or a DGCA-empanelled aerospace medicine specialist regarding the passenger’s fitness to travel.
The DGCA said the revised norms aim to make ticket cancellations and refunds more transparent, timely and passenger-friendly, and warned that any violation would invite penalties under the Aircraft Rules, 1937.