Recently, the government has received many complaints from passengers regarding refund of flight tickets. Most of these complaints can be broadly divided into three categories: delay in refund, amount refunded, issuance of credit for future bookings instead of refund. In view of the huge volume of complaints, the government has decided to set certain minimum standards for refund policies. In this article, we will understand the Civil Aviation Requirements (CARs) set by the government for refund of flight tickets to passengers.
Civil Aviation Requirements (CAR) were issued by the Director General of Civil Aviation (DGCA) on 24 February 2026. They apply to domestic and foreign carriers operating to and from India. The rules are effective from March 26, 2026. Let us understand some of these rules.
1. Look-in option
Sometimes a person’s travel plans change soon after booking a flight ticket. Changes in travel plans may require cancellation or amendment of the ticket. To proceed with these, airlines must provide a 48-hour post-booking window. If cancellation/modification is made during this look-in window, the airline will allow the same without any additional charges. The exception is when a passenger amends a ticket and books a higher priced ticket.
Look-in facility is applicable on flight tickets meeting the departure criteria. For domestic flights, departure must be more than 7 days from the date of ticket booking. For international flights, departure must be more than 15 days from the date of ticket booking. Tickets must be booked directly through the airline’s website.
Look-in facility will expire after 48 hours from the booking time. After 48 hours, the passenger will have to pay the relevant charges for any ticket cancellation or modification.
2. No extra charges for name correction
Sometimes a person may make a mistake by entering the flyer’s name incorrectly. If the passenger reports the error within 24 hours of making the booking, the airline may not charge additional fees for correcting the name. This rule applies to tickets booked directly from the airline’s website.
3. Refund in Credit Shell
For canceled tickets, the airline would prefer to provide the refund amount in the credit shell held with it. The passenger can use this amount to book a flight with the same airline at a future date. This assures the airline of future business.
DGCA has said that under the new rules, airlines can give the customer the option to take the refund amount for canceled flight tickets in a credit shell. However, this would only be an option and not the airline’s default practice. It is up to the customer to decide whether they want a refund in the form of a credit shell or not.
It would be better for the customer to take the refund in the original payment method, such as cash or credit card. With this option, they will have the freedom to decide whether to book the next flight with the same airline or some other airline.
4. Refunds by foreign airlines
Foreign airlines flying to/from India will have to refund tickets as per the rules of their country of origin. For flight bookings made through credit cards, refunds must be processed to the credit card within 7 days of cancellation. For cash transactions, refund should be made immediately by the airline office from where the ticket was purchased.
Refunds for tickets booked through travel agents/portals are the responsibility of the airline and the refund process should be completed within 14 working days.
5. indication of cancellation fee
The new DGCA rules state that flight ticket cancellation charges should be prominently displayed at the time of booking. This step will let the customer know whether they are booking a refundable or non-refundable fare and if refundable, how much cancellation fee will be deducted from the refund amount.
6. Cancellation Fee
DGCA has said that under no circumstances can an airline or its agent charge a cancellation charge more than the basic fare and fuel surcharge. This will not include charges (if any) imposed by the travel agent (to be fully disclosed at the time of booking). The airline is responsible for ensuring this through its contract with the travel agents/portals.
Other rules include the following:
- If a ticket booked on a credit card is cancelled, the airline will issue a refund to the credit card account used to book the ticket within 7 days of cancellation.
- If a ticket purchased by paying cash is cancelled, the airline office from where the ticket was purchased will make a refund immediately.
- The airline may not impose any additional charges for processing the refund.
- In case of ticket cancellation, non-utilisation or no-show, the airline will refund all statutory taxes, UDF, ADF and PSF. This 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, OTA or offline agent and is cancelled, the responsibility for refund lies with the airline. The passenger must receive the refund within 14 working days.
- For tickets canceled due to medical emergency (hospitalization during the travel period), the airline may provide either a refund or a credit shell.
While DGCA issued the above CAR on 24 February 2026, the Ministry of Civil Aviation issued a press release on 18 March 2026. The press release was on strengthening passenger amenities in Indian aviation.
Press Release of Ministry of Civil Aviation
Through the DGCA, the ministry has issued instructions to airlines to provide a higher percentage of seats for selection, seating of family members and others without additional charges. Let us understand some of these directions.
1. At least 60% seats will be allotted free of cost
Airlines charge a fee for selecting premium seats. These include the window, aisle, front row, seats next to the emergency exit, etc. As a result, very few seats remain for selection without paying the seat selection fee. In the latest instructions, airlines have been asked to offer at least 60% seats in any flight without any seat selection charges. This will ensure fair access to premium seats for a wider audience without any seat-selection charges.
2. Family members should be seated together
By paying seat selection charges, a family traveling on the same PNR can choose adjacent seats so that all members sit together. Without paying a seat selection fee, family members are usually seated in different rows. Therefore, a family has to bear additional costs to sit together during a flight.
DGCA has taken cognizance of this issue. It has asked airlines to seat family members traveling on the same PNR together, preferably in adjacent seats.
Other directions include:
- To facilitate transportation 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 denial of boarding
- Passenger rights should be prominently displayed on airline websites, mobile apps, booking platforms and airport counters
- Passenger rights should be clearly communicated in regional languages to ensure wider reach and awareness
The above are instructions for airlines, not rules. It remains to be seen whether the government will include these in the rules in future or not.
Passenger convenience remains the top priority for the government. The DGCA rules (effective March 26), and the Civil Aviation Ministry instructions (issued March 18), are all steps in that direction. The Ministry of Civil Aviation is committed to enhancing the passenger experience, ensuring transparency, reducing complaints and maintaining the highest standards of safety in the aviation ecosystem.