Air travel in India is set to become more passenger-friendly. In a move aimed at improving transparency and reducing post-booking stress, the Directorate General of Civil Aviation (DGCA) has revised its Civil Aviation Requirements (CAR) to introduce a 48-hour “look-in” period. This will allow travellers to modify or cancel tickets without penalty under specific conditions. The revised rules will come into effect from March 26.
Under the new framework, passengers who book tickets directly through an airline’s website can cancel or amend their booking within 48 hours without paying any cancellation fee. The only additional cost applicable will be the fare difference if the ticket is rescheduled to a higher-priced flight.
Conditions apply
However, the benefit comes with eligibility conditions. The departure date must be at least seven days away for domestic travel and 15 days away for international travel. Bookings made through travel agents or online portals are not covered under the 48-hour waiver.
The regulator has also simplified the process for correcting passenger names. Airlines cannot charge any fee for correcting the name of the same traveller if the error is reported within 24 hours of booking. This again can only happen if the ticket was purchased directly from the airline.
Faster refunds, clearer timelines
The revised CAR also introduced stricter timelines for refunds. Airlines must process refunds within seven days for credit card transactions. For tickets purchased in cash at airline offices, refunds must be issued immediately at the point of purchase.
In addition, airlines are required to refund all statutory taxes and passenger service charges in cases of cancellations or no-shows, even when the base fare itself is non-refundable.
If a ticket is cancelled through a travel agent or portal, the airline must ensure that the refund process is completed within 14 working days.
Transparency on ‘hidden charges’
To address long-standing complaints about hidden fees, the DGCA has mandated that airlines clearly disclose cancellation policies and the exact refund amount admissible at the time of booking. Cancellation charges must be prominently displayed and cannot exceed the sum of the basic fare and fuel surcharge.
Airlines are also barred from levying any additional fee for processing refunds. Importantly, offering the refund as a credit shell cannot be made the default option; it must be chosen by the passenger.
Special provisions for medical emergencies
The updated rules provide flexibility in cases of medical emergencies. If a passenger or a family member on the same booking faces a medical issue, airlines may offer either a full refund or a credit shell. “For all other situations, refunds will be issued once an opinion on the passenger’s fitness to travel certificate is received from an airline’s Aerospace Medicine specialist/ DGCA empanelled Aerospace Medicine specialist,” it said.
The tighter rules come against the backdrop of rising passenger complaints. In December 2025 alone, scheduled airlines received 29,212 grievances, with about 7.5% linked to refund issues. During the same month, domestic carriers flew more than 1.43 crore passengers, according to DGCA data.
The pressure is only growing as India’s aviation sector continues its rapid ascent. Domestic airlines carried over 16.69 crore passengers in 2025.