Air travel in India is about to get a lot more passenger-friendly. The Directorate General of Civil Aviation (DGCA), India’s aviation regulator, has proposed major changes to how airlines handle ticket cancellations and refunds. The move aims to protect flyers from unfair charges, hidden conditions, and long refund delays that have long frustrated travellers.
A new chapter for air travellers
Every day, thousands of passengers in India book flights for work, family visits, or holidays. But a sudden plan change, a medical issue, or an emergency often forces them to cancel or reschedule. Many end up losing a big part of their fare to steep cancellation charges or confusing refund rules.
Now, the DGCA wants to change that. It has released a draft Civil Aviation Requirement (CAR) policy that promises fairer refund processes, faster settlements, and more flexibility for passengers. The draft is open for public feedback until 30 November 2025.
48 hours of free cancellation
One of the most talked-about changes is the free 48-hour cancellation window. Under this rule, passengers can cancel or modify their tickets within 48 hours of booking without paying any fee but only if the flight is scheduled at least five days away for domestic routes or 15 days away for international flights.
This means if you book a flight for next week and change your mind within two days, you can get a full refund without any deduction. The DGCA says this rule will give passengers breathing space to correct booking mistakes or adjust travel plans without financial loss.
For frequent flyers and families booking in advance, this could bring welcome relief.
Full transparency in charges
The DGCA has also asked airlines to display cancellation and modification fees upfront on their websites, mobile apps, and during the booking process.
At present, many travellers discover hidden deductions only after cancelling a ticket. The new rule ensures that all costs are clear before purchase. This could help passengers compare airlines more easily and choose the one that offers the best value and flexibility.
Refund delays have been one of the biggest complaints among Indian flyers, especially during the pandemic. Under the new proposal, airlines must process all refunds within 21 working days of cancellation.
This rule applies whether you booked directly through an airline or through a third-party travel portal. Airlines will be held accountable for ensuring that refunds reach the passenger on time, even if the booking was made through an agent.
The DGCA says this will end the “blame game” between airlines and travel websites, where passengers often get caught in the middle.
The DGCA draft also includes provisions for medical or emergency cancellations. Passengers who are unable to travel due to health reasons, supported by valid medical documents, will be entitled to refunds even for non-refundable tickets.
Additionally, the regulator has directed airlines to refund all applicable taxes, airport fees, and user development charges on any unused ticket, regardless of fare type.
This step ensures that passengers do not lose money on charges that were never actually used.
The DGCA’s proposed rules come after several consumer complaints and public grievances about the lack of clarity and fairness in refund systems. During the pandemic, many passengers struggled to get refunds for cancelled flights, which highlighted the gaps in existing policies.
If implemented, these rules will make airlines more accountable and give passengers stronger consumer protection rights.
The aviation watchdog also plans to monitor compliance closely. Airlines found violating refund timelines or misinforming passengers could face penalties.
The draft policy is currently open for public and industry feedback. Travellers, airlines, and travel agents can send their suggestions to the DGCA by 30 November 2025.
Once the regulator reviews all responses, it will issue final rules that will be legally binding on all domestic and international airlines operating in India.
If approved, the new refund system could come into effect by early 2026, marking one of the biggest overhauls of passenger rights in Indian aviation in years.
For Indian flyers, these rules could mean:
- Greater flexibility to change or cancel plans without losing money.
- Quicker, smoother refund processes.
- Transparency on all charges before booking.
- Fair treatment in emergencies or unavoidable situations.
Ultimately, the DGCA’s move is designed to make flying more trustworthy and stress-free. In a country where millions depend on air travel for business and personal reasons, these reforms could reshape the passenger experience for the better.
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