Zero Cancellation Fee! DGCA Orders Airlines to Stop Charging Passengers for Flight Cancellations

In a move that will cheer millions of frequent flyers, the DGCA has introduced new norms to curb the exorbitant cancellation and rescheduling fees charged by airlines. On March 22, 2026, the regulator announced that domestic and international carriers operating in India must provide a ‘Free Cancellation’ window and transparent refund policies.

The New Mandates Include:

  • 24-Hour Zero-Fee Window: Passengers can cancel or amend their bookings without any penalty within 24 hours of booking, provided the travel date is at least 7 days away.
  • Correction of Errors: No charges shall be levied for correcting minor spelling mistakes in the passenger’s name.
  • Flight Delays/Changes: If an airline changes flight timings significantly, the passenger is entitled to a 100% refund if the new schedule is not acceptable.
  • Full Tax Refund: Even for ‘Non-Refundable’ tickets, statutory taxes like PSF and UDF must be refunded to the passenger upon cancellation.

These pro-passenger rules are set to be enforced from May 1, 2026, marking a major victory for consumer rights in the Indian aviation sector.

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