Big Travel Update For Passengers: Last-Minute Flight Cancellations May Soon Cost Less? Here’s What We Know

Passengers who cancel their flights just hours before departure may soon get a major relief. The government is reportedly working on a new system that will allow travellers to receive up to 80 per cent of their ticket amount even if they cancel at the last minute. This could become a reality within the next two to three months.

Right now, cancelling a flight within three hours of departure is treated as a no-show. This means passengers usually lose the entire booking amount. Refunds are only given in rare cases, such as medical emergencies, and even these depend completely on the airline’s discretion.

According to a Times of India report, the aviation ministry is in talks with airlines to introduce an in-built travel insurance feature in every air ticket. This insurance is expected to be included at no extra cost for passengers. Instead, airlines will pay the premium to insurance companies through special arrangements. Currently, travel insurance is optional and must be purchased separately by travellers.

A senior airline official told TOI that the idea is to include a basic insurance element even in the lowest fare category so that passengers get some refund in case they cannot travel. Discussions are ongoing to finalise how the system will work.

How Insurance May Work

Sources quoted in the report said many people avoid booking flights because they fear losing money if sudden emergencies force them to cancel. Complaints are common, especially when passengers face tragedies in their families and receive no refund.

Officials estimate that adding an insurance premium of around Rs 50 to each ticket could allow up to 80 per cent refund for cancellations made up to four hours before departure.

Airline officials also noted that online travel agencies already push optional insurance. They added that insurance companies will have to work out the risk and decide what they can offer. If only a few passengers out of a full flight cancel for genuine reasons, the model should be sustainable.

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