New Air Ticket Refund Rules 2026: 48-Hour Free Cancellation Explained
India’s aviation regulator, the Directorate General of Civil Aviation (DGCA), has introduced a major passenger-friendly reform called the “Look-in Option”, allowing travellers a 48-hour free cancellation and modification window on flight bookings.
The new Civil Aviation Requirements (CAR) will come into effect from March 26, 2026, and aim to protect passengers from delayed refunds, hidden charges, and forced credit shells.
Here’s everything you need to know about the New Air Ticket Refund Rules 2026.
What Are the New Air Ticket Refund Rules 2026?
Under the revised CAR guidelines, airlines must prioritise passenger rights and streamline refund processing. The move follows a surge in complaints regarding refund delays and non-transparent fee deductions.
Key Highlights of the New Rules:
- Zero cancellation fee for changes or cancellations within the first 48 hours of booking (subject to conditions).
- Credit card refunds must be processed within 7 days.
- For tickets booked via travel portals, the airline remains legally responsible for ensuring refunds within 14 working days.
- Refunds cannot be automatically converted into credit shells; passengers must be given the choice.
- Mandatory refund of statutory taxes including UDF (User Development Fee), ADF (Airport Development Fee), PSF (Passenger Service Fee) — even for non-refundable or promotional fares.
How the 48-Hour Free Cancellation Works: Step-by-Step Guide
Passengers can follow these steps to avail of the 48-hour free cancellation benefit:
- Cancel within 48 hours of booking the ticket.
- Visit the airline’s official website (free cancellation may not be mandatory on third-party apps).
- Go to the ‘Manage Booking’ section.
- Ensure the system displays zero cancellation fees.
- For date changes, only the fare difference is payable.
- Choose the original payment mode to receive the refund instead of opting for a credit shell.
Who Can Use the 48-Hour Free Cancellation Rule?
The benefit does not apply to last-minute bookings. Here’s who qualifies:
- Domestic travellers: Departure must be at least 7 days from the booking date.
- International travellers: Departure must be at least 15 days from booking.
- Passengers who booked directly through the airline’s website.
- Name corrections within 24 hours of booking are allowed free of charge.
What If Airlines Refuse Free Cancellation?
If an airline refuses a free cancellation within the 48-hour window or delays the refund beyond the stipulated period, passengers can escalate the issue:
- Quote the relevant DGCA Civil Aviation Requirements.
- File a complaint on the AirSewa portal.
- Tag the Ministry of Civil Aviation and the airline on social media for faster redressal.
Important: Even after the 48-hour window, airlines cannot charge a cancellation fee higher than the sum of the basic fare and fuel surcharge.
Why This Rule Matters
The 2026 refund reform marks a significant shift toward passenger-centric aviation policy in India. With mandatory refund timelines, elimination of hidden fees, and the freedom to avoid forced credit shells, travellers now have stronger legal protection than ever before.
As the implementation date approaches, passengers are advised to carefully review airline policies and ensure bookings are made directly through official platforms to fully benefit from the new rules.
