In the past, the government has received numerous complaints from passengers regarding refunds for flight tickets. A majority of these complaints can be broadly divided into three categories: delays in refunds, the refunded amount, issue of credit for future bookings instead of refunds. Given the sheer volume of complaints, the Government has decided to set some minimum benchmarks for the refund policies. In this article, we will understand the Civil Aviation Requirements (CAR) set by the Government for the refund of flight tickets to passengers.
The Civil Aviation Requirements (CAR) were released by the Director General of Civil Aviation (DGCA) on 24th February 2026. They apply to domestic and foreign carriers operating to and from India. The rules are effective from 26th March 2026. Let us understand some of these rules.
1. Look-in option
Sometimes an individual’s travel plans change shortly after booking the flight tickets. A change in travel plan may necessitate either the cancellation or amendment of the ticket. To proceed with these, the airlines will have to provide a 48-hour post-booking window. If the cancellation/amendment is done during this look-in window, the airline shall allow it without any additional charges. The exception is when a passenger amends the ticket and books a higher-priced ticket.
The look-in facility applies to flight tickets meeting the departure norms. For domestic flights, the departure should be more than 7 days from the ticket booking date. For international flights, the departure should be more than 15 days from the ticket booking date. The ticket should have been booked directly through the airline’s website.
After 48 hours from the booking time, the look-in facility will end. After 48 hours, the passenger will have to pay the relevant fees for any ticket cancellation or amendment.
2. No additional charges for name correction
Sometimes an individual may make a mistake by entering the incorrect spelling of a flyer’s name. If the passenger points out the error within 24 hours of making the booking, the airline cannot charge an additional fee for correcting the name. The rule applies to tickets booked directly through the airline’s website.
3. Refund in a credit shell
For a cancelled ticket, the airline will prefer to provide the refund amount in a credit shell held by it. The passenger can use this amount to book a flight with the same airline, at a future date. It assures the airline of future business.
Under the new rules, the DGCA has said, the airline can offer the customer the option to take the refund amount for a cancelled flight ticket in a credit shell. However, that will only be an option, and not a default practice of the airline. It is the customer who will decide whether they want the refund in the form of a credit shell or not.
Taking the refund in the original payment method, such as cash or credit card, will be better for the customer. With this option, they will have the freedom to decide whether and when to make the next flight booking with the same airline or some other airline.
4. Refund by foreign airlines
Foreign airlines operating to/from India must refund the tickets in accordance with the regulations of their country of origin. For a flight booking done with a credit card, the refund should be processed to the credit card within 7 days of cancellation. For cash transactions, the refund must be made immediately by the airline office from where the ticket was purchased.
For tickets booked through a travel agent/portal, the onus for the refund lies with the airline, and the refund process must be completed within 14 working days.
5. Indication of cancellation charges
The DGCA’s new rules state that flight ticket cancellation charges must be indicated prominently at the time of booking. The move will make the customer aware whether they are booking a refundable or non-refundable fare and, if refundable, how much cancellation charges will be deducted from the refund amount.
6. Cancellation charges
The DGCA has said that under no circumstances can an airline or its agent levy cancellation charges higher than the basic fare plus the fuel surcharge. It will exclude the charges (if any) levied by the travel agent (fully disclosed at the time of booking). The airline is responsible for ensuring this through its contracts with the travel agents/portals.
The other rules include the following:
- If a ticket booked with a credit card is cancelled, the airline shall make the refund within 7 days of the cancellation to the credit card account used to book the ticket.
- If a ticket purchased with cash payment is cancelled, the airline office from where the ticket was purchased shall make the refund immediately.
- The airline cannot levy any additional charge to process the refund.
- In the event of a ticket cancellation, non-utilisation, or no show, the airline shall refund all statutory taxes, UDF, ADF, and PSF. The provision applies to all types of fares offered, including promos, special fares, and those where the base fare is non-refundable.
- When a ticket is booked through an airline, an OTA, or an offline agent, and is cancelled, the onus for the refund lies with the airline. The passenger must receive the refund within 14 working days.
- For a ticket cancelled due to a medical emergency (hospitalisation during travel period), the airline may provide either a refund or a credit shell.
While the DGCA released the above CAR on 24th February 2026, the Ministry of Civil Aviation issued a press release on 18th March 2026. The press release was on strengthening passenger facilitation in Indian aviation.
Ministry of Civil Aviation press release
Through the DGCA, the Ministry has issued directions to airlines to make a higher percentage of seats available for selection without additional charges, to seat family members together, and others. Let us understand some of these directions.
1. At least 60% seats to be allocated free of charge
Airlines charge a fee for selecting premium seats. These include window, aisle, front row, seats next to the emergency exit, etc. As a result, very few seats remain for selection without paying seat selection charges. In the latest directions, airlines have been asked to offer at least 60% of the seats on any flight without any seat selection charges. It will ensure fair access to premium seats for a wider audience without any seat-selection charges.
2. Family members to be seated together
By paying seat selection charges, a family travelling on the same PNR can choose adjacent seats so that all members can sit together. Without paying the seat selection charges, the family members usually get seated across different rows. So, a family has to incur an additional cost just to sit together during a flight.
The DGCA has taken note of this issue. It has asked airlines to seat family members travelling on the same PNR together, preferably in adjacent seats.
The other directions include:
- Facilitating the carriage of sports equipment and musical instruments in a transparent and passenger-friendly manner
- Airlines should have a clear and transparent policy for the carriage of pets
- Strict adherence to the passenger rights framework, particularly in cases of delays, cancellations and denied boarding
- Passenger rights must be prominently displayed across airline websites, mobile Apps, booking platforms, and airport counters
- Passenger entitlements must be clearly communicated in regional languages to ensure wider accessibility and awareness
The above are directions for airlines and not rules. Whether the Government will mandate them into rules in future remains to be seen.
For the government, passenger facilitation remains the highest priority. The DGCA rules (effective from 26th March), and the Ministry of Civil Aviation directions (issued on 18th March), are all steps in that direction. The Ministry of Civil Aviation remains committed to enhancing passenger experience, ensuring transparency, reducing grievances and upholding the highest standards of safety across the aviation ecosystem.
