Flight cancelled? Amid Iran–Israel conflict, know DGCA refund timeline, free cancellation rules

Flight disruptions and cancellations have increased due to tensions in the Middle East region. As a result, passengers should be aware of the Directorate General of Civil Aviation (DGCA) ticket refund rules that airlines must follow when flights are cancelled or tickets are not used. These include a mandatory refund timeline, a 48-hour free cancellation or modification window, limits on maximum cancellation charges, and a requirement for airlines to refund statutory taxes even on non-refundable tickets. The new rules are effective from March 26, 2026.

In case of credit card payments, the airline should refund within seven days of the cancellation to the account of the credit card holder. In case of cash transactions, refund should be made immediately by the airline's office from where the ticket was purchased. In case of purchase of ticket through travel agent/portal, onus of refund will lie with the airline as agents are their appointed representatives. The airline should ensure that the refund process is completed within 14 working days.

The airline shall refund all statutory taxes and User Development Fee (UDF)/Airport Development Fee (ADF)/Passenger Service Fee (PSF) to passengers in case of cancellation/non-utilisation of tickets/no show. This provision will also be applicable for all types of fares offered including promos/special fares and where the basic fare is non-refundable.

As per the revised rules, the airline shall provide a "Look-in option" for a period of 48 hours after booking a ticket. During this period, a passenger can cancel or amend the ticket without any additional charges, except for the normal prevailing fare for the revised flight for which the ticket is sought to be amended.

Under no circumstances, the airline or its agent will levy cancellation charges more than the basic fare plus fuel surcharge. This will exclude any charges levied by the travel agent, which have been fully disclosed at the time of booking. It will be the responsibility of the airline to ensure this through their contracts with travel agents/portals.

DGCA further says an airline should indicate in an unambiguous manner the amount of refund of money admissible on cancellation of a ticket.

For this purpose, the amount and its break-up may be indicated on the ticket itself or through a separate form used for the purpose, and the policy and amount of refund shall also be displayed by the airlines on their respective websites, says the watchdog.

The airlines should not levy any additional charge to process the refund. Airlines should not levy any additional charge for correction in the name of the same person when the error is pointed out by the passenger within 24 hours of making the booking, when the ticket is booked directly through the airline website.

In the event of ticket cancellations due to a medical emergency, where the passenger or a family member listed on the same PNR gets admitted/hospitalized during the travel period, airlines may provide either a refund or a credit shell. 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.