Passengers will now get a 48-hour window to cancel or modify air tickets without any additional charge, as the Directorate General of Civil Aviation (DGCA) revises refund norms amid judicial scrutiny over delays and opaque airline practices.The revised Civil Aviation Requirements (CAR), effective March 26, introduce a mandatory “look-in option” allowing passengers to cancel or amend bookings within 48 hours without penalty, except for fare differences. The relaxation will not apply to bookings made within seven days of domestic travel and 15 days of international departures.The DGCA has also fixed timelines for refunds, and said airlines must process refunds for credit card payments within seven days to the original account, while cash transactions must be refunded immediately. Where bookings are made through travel agents or online portals, airlines remain responsible for ensuring refunds are completed within 14 working days.The order issued on February 24 said: “Refund shall be made by the airlines within seven days of cancellation to the account of credit card holder”, and in case of cash transactions, “refund shall be made immediately by the airlines office from where the ticket was purchased”.The order also closed a key gap by mandating that all statutory taxes and user development fees be refunded even for non-refundable tickets. “The airlines shall refund all statutory taxes and user development fee (UDF)/airport development fee (ADF)/passenger service fee (PSF),” it read, adding that this will apply across fare categories, including promotional fares.To address disputes over deductions, the DGCA has capped cancellation charges. “The airline or its agent shall levy cancellation charge not more than the basic fare plus fuel surcharge,” the order said, placing the onus on airlines to ensure compliance by travel agents and booking platforms.The DGCA also said airlines should not levy any additional charge for correcting the name of the same person if the error is pointed out by the passenger within 24 hours of making the booking, provided the ticket was booked directly through the airline’s website.Transparency has been made mandatory. The order said, “The airline should indicate in an unambiguous manner the amount of refund… on the ticket itself or through separate form and also display refund amounts on their websites. Cancellation charges must be indicated prominently at the time of booking.”On the 48-hour window, the order specified: “During this period, passenger can cancel or amend the ticket without any additional charges, except for the normal prevailing fare for the revised flight.”In December 2025, scheduled airlines recorded 29,212 passenger complaints, of which 7.5 per cent were linked to refund issues. During the same period, domestic carriers transported more than 1.43 crore passengers, according to data from the DGCA.


