New air refund & cancellation rules from March 26

The Directorate General of Civil Aviation (DGCA), India's aviation regulator, has introduced significant passenger-friendly revisions to air ticket refund and cancellation norms, effective from March 26, 2026. The updated Civil Aviation Requirements (CAR), notified on February 24, 2026, aim to provide greater flexibility for travelers who make booking errors, change plans suddenly, or need minor corrections, while imposing clearer obligations on airlines. A key highlight is the introduction of a 48-hour "look-in option" window.

Passengers can now cancel or amend their tickets without any additional charges (beyond potential fare differences for changes) within 48 hours of booking, provided the departure date is at least 7 days away for domestic flights or 15 days away for international flights. This offers substantial relief for accidental bookings or immediate reconsiderations, extending beyond previous shorter windows in many cases. Additionally, airlines are prohibited from levying fees for name corrections within 24 hours of booking, as long as the ticket remains in the same passenger's name and the booking is made directly through the airline's website.

 For tickets booked via travel portals or agents, the responsibility for processing refunds shifts squarely to the airline, ensuring accountability. The DGCA has also established stricter refund timelines and caps: Refunds must be processed within 14 working days in general cases. For credit card payments, refunds are required within 7 days, while cash payments must be handled immediately. Cancellation charges are now limited to the base fare plus fuel surcharge only.

Even on non-refundable tickets, full refunds of taxes, user development fees, and airport charges are mandatory. In cases of medical emergencies supported by valid documentation, passengers can seek full refunds or travel credits. These measures build on ongoing efforts to enhance consumer protection in India's aviation sector, addressing common pain points like hidden fees, delayed refunds, and rigid policies. The rules apply to both domestic and international flights operated by Indian carriers, as well as foreign airlines flying to/from India. Industry observers note that the changes could encourage more confident last-minute bookings while pressuring airlines to improve service transparency and efficiency. Travelers are advised to review the official DGCA notification for full details and ensure bookings align with the conditions, particularly the advance departure requirements for availing the free cancellation window. The new norms represent a step toward more balanced passenger rights in line with global best practices.