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DGCA Revises Refund Norms to Benefit Air Passengers

The Directorate General of Civil Aviation (DGCA) has introduced a new policy to make air travel more passenger-friendly. As per the revised Civil Aviation Requirements (CAR) for refund of airline tickets, passengers will now be able to cancel or modify their bookings within 48 hours of making the purchase without incurring any additional charges, subject to certain conditions.

Key Provisions:

  • Airlines must offer a 48-hour "look-in option" during which passengers can cancel or amend bookings without penalty, apart from any fare difference on the revised flight.
  • The facility will not apply to tickets booked directly on an airline's website if the departure is within seven days for domestic flights or 15 days for international flights from the date of booking.
  • Airlines must complete the refund process within 14 working days.
  • In cases of medical emergencies, airlines may offer a refund or a credit shell if a passenger or a family member on the same PNR is hospitalised during the travel period.

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Relief for Flyers:

  • Airlines will not levy additional charges for correcting a passenger's name if the error is reported within 24 hours of booking and the ticket was purchased directly through the airline's website.

Background:

  • The revised norms follow a rise in complaints over delayed refunds, an issue that came into focus during the December 2025 disruptions involving IndiGo.
  • In December 2025 alone, scheduled airlines received 29,212 passenger-related complaints, with 7.5% linked to refunds.
  • During the month, domestic carriers transported over 1.43 crore passengers.
  • For the full year 2025, Indian airlines carried more than 16.69 crore passengers.

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Investor Takeaway

Investors should be aware of the changes in air ticket refund policies and their potential impact on the aviation industry.

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