DGCA New Refund Policy 2026:The Directorate General of Civil Aviation (DGCA) has established new airline ticket refund and cancellation procedures which focus on providing better services to customers who fly within India.
DGCA New Refund Policy 2026
The Civil Aviation Requirements (CAR) need to improve transparency and decrease refund disputes because they protect consumer rights in the growing aviation industry.
48-Hour Free Cancellation Window
The “Look-In” Option provides customers with a 48-Hour Free Cancellation Window. The introduction of a 48-hour penalty-free cancellation and modification window after booking a flight ticket which allows passengers to cancel or change their tickets without extra fees except for fare differences to other flights represents one of the most impactful changes.
No addl charge for name correction in ticket if error is flagged by passenger within 24 hours of booking made through airline’s website: DGCA.
Airlines should ensure completion of refund process within 14 working days for tickets booked through travel agents, portals: DGCA.… pic.twitter.com/F6Z4Kd7zVR
— Press Trust of India (@PTI_News) February 26, 2026
However, the facility is subject to certain conditions. It will not apply when the travel date is too close specifically, if departure is less than seven days away for domestic flights or 15 days for international flights at the time of booking (when booked directly with the airline). After the 48-hour period ends, standard airline cancellation fees will apply.
Name Corrections Without Extra Charges
The name correction procedure constitutes a significant reform. Airlines are prohibited from charging any additional fee for correcting minor name errors of the same passenger if the mistake is reported within 24 hours of booking. This rule applies only to passengers who booked their tickets through the airline’s official website.
Airlines must handle refunds for all ticket purchases made through travel agents. The DGCA has established clear guidelines which determine who is responsible for refunding tickets purchased through travel agents and online platforms.
“In case of purchase of ticket through travel agent/portal, onus of refund shall lie with the airlines as agents are their appointed representatives. The airlines shall ensure that the refund process is completed within 14 working days,” the Directorate General of Civil Aviation (DGCA) said in a statement.
The regulator requires airlines to finish the refund process for these situations within 14 business days. This rule prevents any delays which would occur when airlines and booking intermediaries have disputes.
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Faster Refund Timelines and Mandatory Tax Refunds
The updated regulations create uniform refund processing times which apply to all payment methods. Airlines must process refunds within seven days for credit card transactions and immediately for cash payments made at airline offices. All statutory taxes and passenger service charges must be refunded even if the base fare is marked “non-refundable.”
“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,” the DGCA added.
Special Provisions for Medical Emergencies
The DGCA established medical emergency cancellation rules to handle unanticipated events. Airlines will provide refunds or future travel credits when a passenger or their traveling companion needs medical treatment during their journey.
Refunds will be granted for other medical issues after an airline or DGCA-approved aerospace physician assesses the passenger’s ability to travel.
Implementation Timeline and Impact on Airlines
The new regulations will begin on March 26 2026 which gives airlines sufficient time to develop their operational systems and organizational policies according to the new standards.
The changes will provide substantial advantages to passengers yet they will also create financial challenges for airlines whose business model depends on cancellation fees and additional service charges.
