On 24-2-2026, the Director General of Civil Aviation issued a Civil Aviation Requirements regarding refund of airline tickets to passengers of Public Transport Undertakings. These requirements will be effective from 26-3-2026.
Background:
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The issue of refunds of tickets by airlines has become a major source of grievance amongst airline passengers.
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These complaints are regularly received and divided into following categories:
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Delay in refund of unused tickets;
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The amount which is refunded by the airlines against cancelled tickets;
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Policy of not refunding the ticket amount but to adjust against tickets to be purchased for future travel in the same airline which is valid for a limited period.
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Although the Government does not interfere in the commercial practices of airlines, it was necessary to safeguard the interest of the public.
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Even after several discussions with the airlines, there has been no improvement in the system adopted by airlines for refund of tickets. Hence, the onus rests with Government to fix some minimum benchmarks.
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Key Changes Introduced by DGCA Refund Rules It has prescribed minimum requirements for refund of ticket with respect to air transport undertakings including scheduled domestic operators/ non- scheduled domestic operators foreign carriers operating to/ from India.
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Requirements prescribed under various situations:
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Credit Card Payments: A refund to be made within 7 days of cancellation to the account of the credit card holder.
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Cash Transactions: A refund to be made immediately by the airlines office from where the ticket was purchased.
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Ticket purchased through travel agent/ portal: Onus of refund will lie with the airlines as agents are their appointed representatives.
The refund process should be completed within 14 working days.
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Statutory taxes refund: airlines will have to refund all statutory taxes and User Development Fee, Airport Development Fee, Passenger Service Fee in case of cancellation/ non utilization of tickets/ no show. This provision will be applicable for all types of fares offered including promos/ special fares and where the basic fee is nonrefundable.
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“Look-in option”:
✓ This option has to be provided by airlines for a period of 48 hours after booking tickets.
Beyond these 48 hours, this option will not be available, and the passenger will have to pay relevant cancellation fees.
✓ Passenger will be able to cancel/ amend the ticket without any additional charges, except for the normal prevailing fare for the revised flight.
✓ This facility will not be available in the following cases if the ticket is booked directly through airline website:
▪ In domestic flights- if the departure is in less than 7 days;
▪ In international flights- if the departure is in less than 15 days.
✓ Passengers will have the choice to keep their refund in a credit shell; airlines will not do this by default.
✓ Airlines will have to clearly indicate the amount of refund money admissible on cancellation of a ticket.
✓ Cancellation charges should be indicated clearly at the time of booking.
✓ Airlines/ its agents cannot charge cancellation charges more than the basic fare plus fuel surcharge.
✓ No additional charges will be imposed by the airlines to process the refund.
✓ No additional charges will be imposed by the airlines for correction in name if the error is pointed within 24 hours of making the booking if the ticket is directly booked through the airline’s website.
✓ In the situation where a ticket has been cancelled due to medical emergency caused to the passenger or a family member listed on the same PNR and they got admitted or hospitalized during the travel period; the airlines can either provide a refund or a credit shell.
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