Under new aviation rules, airlines to now display cancellation charge details separately

Under the new aviation rules announced by the Union Ministry of Civil Aviation, airlines will now be required to separately display cancellation charges and refund terms while quoting airfares to passengers. According to a report by Hindustan Times, the primary objective of these new rules is to increase transparency, ensuring that passengers receive clear information regarding all costs at the time of booking tickets.

These new rules have been framed under the 'Indian Aviation Rules, 2026', which were notified by the Ministry of Civil Aviation on 26 October and published in the Gazette of India on 31 October. These rules will come into effect from 1 January, 2027, and will replace the 'Aircraft Rules, 1937'. This legal framework has been prepared under the 'Indian Aviation Act, 2024', which has replaced the old 'Aircraft Act, 1934'.

In the process regarding the Indian Aviation Act, 2024, the Lok Sabha passed it on 9 August, 2024, and the Rajya Sabha gave its approval on 5 December, 2024. This Act received the President's assent on 11 December, 2024, and came into force on 1 January, 2025.

As per Rule 192 of the Indian Aviation Rules, 2026, airlines will have to display the total amount payable by the passenger on their booking websites and on the booked tickets. Along with this amount, a full break-up must also be provided, making it mandatory to separately show the fare, tax, fees, cancellation charges, refund terms, and any other charges. This rule will apply not only to Indian airlines but also to foreign airlines operating scheduled services from, to, or through India.

Additionally, all airlines will have to publish their tariffs on their websites or other digital platforms. The format and method of this tariff will be specified by the Directorate General of Civil Aviation (DGCA) to bring awareness and transparency among the general public. Indian scheduled airlines will have to submit their tariffs to the DGCA as per the intervals and methods specified by the regulator. The DGCA will also monitor the tariffs determined by these local airlines.

The new rules are based on the disclosure requirements under the previous 'Aircraft Rules, 1937'. Under the previous rules, airlines were required to show the total amount payable by passengers and its break-up, such as fare, tax, fees, and other charges. However, in the new rules of 2026, cancellation charges and refund terms have also been explicitly included in the list of details.

The rules also state that airlines will have to determine tariffs based on factors including operational costs. In any extraordinary situation, the Central Government may issue written directions to airlines in the public interest. Such directions must be proportionate to the situation and will remain in effect only for a specified period. These provisions do not impose any regular limit (cap) on airfares or create a requirement for government approval for the price of every ticket. Therefore, under normal circumstances, airlines will continue to determine fares themselves, but a new system of tariff submission and monitoring by the DGCA will be implemented.