Patna: India’s aviation regulator has announced sweeping reforms to airline ticket cancellation and refund policies, introducing a consumer-friendly framework set to take effect from March 26,2026. The move is designed to enhance transparency, reduce disputes and provide travellers with greater flexibility when managing flight bookings.
Under the revised rules, passengers will be granted a 48-hour “look-in period” after booking, during which they may cancel or modify tickets without paying any additional charges. If a new flight is selected at a higher fare, however, travellers will be required to pay the difference. The regulator said the provision seeks to minimise booking errors and protect passengers from immediate financial penalties.
The policy will apply with specific conditions. For domestic travel, the journey date must be at least seven days after booking, while international flights must be scheduled at least 15 days later. Additionally, the ticket must be purchased directly through the airline’s official website for the free cancellation benefit to apply. Once the 48-hour window closes, airlines may levy standard cancellation fees.
The updated guidelines also introduce relief for name correction errors. Airlines must allow free correction of spelling mistakes within 24 hours of booking, provided the ticket was purchased directly from the airline. Where bookings are made through travel agents or online platforms, airlines will remain responsible for processing refunds, which must be completed within 14 working days.
Refund timelines have been standardised based on payment method, with airlines required to process credit card refunds within seven days, while cash payments made at airline offices must be refunded immediately. The regulator has also mandated that airlines return all government taxes and passenger service fees in cases of cancellation or no-show, even if the base fare is non-refundable.
Airlines must now clearly display refund policies and cancellation charges on tickets, with cancellation fees capped at the combined value of the base fare and fuel surcharge. The regulator further stated that airlines cannot impose any additional charges for refund processing, marking a significant step toward strengthening passenger protections in India’s fast-growing aviation sector.
