New refund rules tighten timelines, ease name corrections and protect passenger charges

New Delhi: In a major relief for air travellers, India’s aviation regulator has introduced a 48-hour “look-in” period allowing passengers to cancel or amend tickets without paying additional charges, while also tightening refund timelines and easing name correction rules.
The Directorate General of Civil Aviation (DGCA), in revised Civil Aviation Requirements (CAR) issued this week, said passengers can modify or cancel bookings within 48 hours of purchase without incurring penalties.
The move comes amid persistent passenger complaints about refund delays and rigid cancellation policies.
Under the new norms, travellers will not be charged any extra fee for cancellations or changes made within the 48-hour window. However, if a passenger opts for a different flight, the fare difference — if any — will still apply.
The facility, though, is subject to conditions. It will only be available for tickets booked directly through an airline’s official website and only if the scheduled departure is at least seven days away for domestic flights and 15 days away for international flights.
The regulator clarified that once 48 hours from booking have elapsed, standard airline cancellation or amendment charges will apply.
48-hour free cancellation/change
Passengers can cancel or amend tickets without penalty within 48 hours of booking.
Conditions apply
Valid only for tickets booked via airline websites and for flights departing after 7 days (domestic) / 15 days (international).
Fare difference still payable
If switching flights, passengers pay any applicable fare gap.
24-Hour name correction rule
No fees for correcting minor name errors for the same passenger within 24 hours.
Refund timelines tightened
Credit card refunds within 7 days; agent bookings within 14 working days.
Taxes must be refunded
Statutory taxes and passenger charges refundable even on non-refundable tickets.
Medical emergency flexibility
Refund or credit shell permitted for hospitalisation cases.
In another passenger-friendly change, airlines have been barred from levying fees for correcting minor name errors, provided the request is made within 24 hours of booking.
This exemption applies only when tickets are purchased directly from airline platforms and only for corrections involving the same passenger.
The DGCA has also strengthened refund accountability, particularly for bookings made through intermediaries. In cases where tickets are purchased via travel agents or online portals, the responsibility for processing refunds will lie squarely with the airlines.
“The airlines shall ensure that the refund process is completed within 14 working days,” the regulator said, emphasising that agents act as representatives of the carriers.
Refund timelines have also been standardised. Credit card transactions must be refunded within seven days, while cash payments made at airline offices should be reimbursed immediately at the same location.
Significantly, airlines will now be required to refund all statutory taxes and passenger-related charges in the event of cancellations or no-shows, even if the base fare remains non-refundable.
The updated rules also address cancellations arising from medical emergencies. In situations where a passenger or a family member listed on the same Passenger Name Record (PNR) is hospitalised during the travel period, airlines may offer either a refund or a credit shell.
For other medical-related cancellations, refunds will be processed after evaluation of a fitness-to-travel certificate by airline or DGCA-empanelled aerospace medicine specialists.
The amendments were issued on February 24 and will take effect from March 26, 2026.
The regulatory overhaul follows rising passenger grievances, with DGCA data showing that scheduled airlines received over 29,000 passenger complaints in December 2025 alone. Refund-related issues accounted for a notable share of these complaints.
India remains one of the world’s fastest-growing aviation markets, with domestic carriers transporting more than 16 crore passengers in 2025.
-- With IANS inputs