Imagine booking a flight, then doing a double-take at your screen: “Hey, what if I cancel?” Well, Directorate General of Civil Aviation (DGCA) may soon let you do exactly that, with fewer nasty surprises. The regulator has floated a draft of new airline refund rules that could radically change how cancellation works in India. Scroll through everything you need to know before you secure cheap flight ticket bookings online!

What Did the DGCA Propose?

Aircraft
Aircraft
Image credit: Unsplash/SRTgraphy

At the heart of it is a proposed 48-hour “look-in” option. For two full days after you book a ticket, you’d be able to cancel or change your flight without incurring any penalty, as long as the only cost is any fare difference on the revised one. This window only applies when the flight is booked at least five days ahead for domestic trips, or 15 days ahead for international travel.

Why this change? Because flyers are fed up. The DGCA has received a ton of complaints over slow refunds, partial refunds, and airlines pushing credit shells instead of real money. The draft Civil Aviation Requirement (CAR) aims to set minimum standards so that airline refund rules are fairer and more predictable.

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Additional Changes That Will Make Your Trip a 10/10

Calculator
Calculator
Image credit: Unsplash/Kelly Sikkema

Refund timelines

If you paid by credit card, airlines must refund you within 7 days. If you paid cash, the refund should be instant, right at the airline’s office. And if you booked through a travel agent or portal, the airline remains responsible and must issue your refund within 21 working days.

Taxes & fees

All statutory taxes, including things like UDF (User Development Fee), ADF (Airport Development Fee), and PSF (Passenger Service Fee), would be refunded even on promo or so-called “non-refundable” fares.

Cancellation Charges Cap

Airlines won’t be able to charge more than basic fare + fuel surcharge. None of those secret additional fees.

Credit Shell vs Cash

You decide. If an airline offers a credit shell (future-flight voucher), it can’t force you into it.

Name correction

Spelled your name wrong? If you tell the airline within 24 hours of booking (directly on their website), you shouldn’t be charged extra.

Medical Emergency Cancellations

If you cancel due to a genuine medical emergency, airlines must offer either a full refund or a credit shell, whatever you prefer.

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Why This Matters for a Traveller

For people who book flights and then panic (“Was that really the right date?”), This could be a major win, offering more flexibility, more choices, and fewer nasty surprises. For frequent flyers, it forces airlines to be transparent about cancellation charges, so you don’t feel cheated when you cancel. And for refunds, especially for tickets bought via agents, the proposed flight refund policy gives you clear timelines and accountability.

The DGCA is accepting public feedback on these new airline refund rules until November 30, 2025. After that, there’ll be a final decision, and if these changes hold, air travel in India could just get a little more passenger-friendly. Keep your feedback ready by applying for online visa services for 180+ countries to know more!

Summing Up

DGCA is proposing a traveller-first overhaul of airline refund rules, introducing a 48-hour “look-in” period for free flight cancellation, tighter refund timelines (7 days for credit cards, 21 working days via agents), and a cap on cancellation charges (basic fare + fuel surcharge). All statutory taxes would be refunded even on promotional fares, and passengers can choose between cash or credit shell. Public feedback is open until November 30, 2025.

FAQs: Airline Refund Rules

What is the new airline refund rule?
As per DGCA, the new airline refund rule allows passengers to get a full refund even if they cancel 48 hours after booking, depending on certain factors. Passengers will also receive a tax refund in full and enjoy a full refund without any hidden cancellation charges deduction.

Can I get a full refund if I cancel my flight?
Yes, as per the new DGCA rules, you can get a 100% refund if you cancel your booking 48 hours after paying. This only applies to domestic flights booked 5 days before departure and international flights booked 15 days before.

Can I get a 100% on flight cancellation?
Yes, you can get a 100% on flight cancellations if you follow the DGCA rules and the individual airline policy.

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