DGCA Overhauls Air Ticket Refund Policy, Introduces 48-Hour Free Cancellation Window

India’s aviation regulator, the Directorate General of Civil Aviation (DGCA), has updated the guidelines governing airline ticket refunds following a surge in passenger grievances related to delays and complicated refund procedures.

In an official communication, the regulator stated that it has become necessary for the government to establish minimum standards for refund practices in order to address mounting dissatisfaction among air travellers over how certain carriers handle cancellations and reimbursements.

48-Hour ‘No-Penalty’ Window Introduced

Under the revised framework, passengers will now have the option to cancel or modify their tickets without incurring extra charges within 48 hours of booking. However, this provision comes with specific eligibility conditions.

Airlines are required to provide what the DGCA describes as a “look-in option” for the first 48 hours after a ticket is purchased.

During this time, travellers may either cancel or reschedule their booking without paying additional fees, except for any difference in fare if the revised flight is priced higher.

This flexibility will not apply in cases where:

• The departure date for a domestic flight is within seven days of the booking date, or
• The departure date for an international flight is within 15 days of the booking date,
  provided the ticket was booked directly via the airline’s official website.

Once the 48-hour window expires, standard airline cancellation or modification charges will apply.

Free Name Correction Within 24 Hours

The DGCA has also clarified that airlines cannot impose extra fees for correcting minor name errors, provided the passenger flags the mistake within 24 hours of making the reservation.

This concession is valid only for tickets purchased directly through the airline’s website and applies strictly to corrections involving the same traveller.

Special Relief for Medical Emergencies

In another significant change, the regulator has revised norms related to cancellations arising from medical contingencies.

If a passenger—or a family member travelling under the same Passenger Name Record (PNR)—is hospitalised during the scheduled travel period, airlines must offer either:

• A full refund, or
• A credit shell that can be used for future travel.

For other medical circumstances, refunds will be processed after the airline receives a fitness-to-travel assessment from its Aerospace Medicine specialist or a DGCA-approved medical examiner.

Aim: Greater Transparency and Passenger Protection

The updated rules are intended to introduce clarity, fairness, and accountability in airline refund policies. By mandating baseline standards, the regulator aims to reduce disputes, simplify procedures, and restore passenger confidence in the aviation sector.

With air travel steadily rising, the revised framework seeks to ensure that consumer rights remain protected while maintaining operational flexibility for airlines.

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