The issue arose when ABS Tours and Travels booked flights on the Delhi–Goa and Goa–Delhi routes for the busy December–January vacation period in 2023.
Court documents reveal that the plaintiff secured eight groups of tickets, each comprising 80 seats, for flights between Delhi and Goa and back, planned on various dates throughout the Christmas-New Year holiday season, totaling 640 tickets.
The plaintiff stated they made an advance payment of approximately ₹4.82 lakhs, with the remaining 75% due 21 days before the flights as per their agreement.
The airline canceled the reservation roughly one month post-confirmation. While the advance payment was eventually refunded, it took over three months to process, leading the travel agency to file a lawsuit to recover the losses incurred due to the cancellation.
District Judge Commercial Lalit Kumar of the Saket Courts Complex sided with the travel agent. The court concluded, under the Indian Contract Act of 1872, that a binding agreement was formally established once the airline created Passenger Name Records (PNRs) and accepted the advance payment.
The ruling noted that the cancellation deprived the travel agency of a legitimate business opportunity to profit during the busy holiday travel period, where demand for flights to favored tourist destinations like Goa typically surges.
Delhi Court directs Akasa Air to pay ₹1.08 crore to travel agent over cancelled booking of 640 seats pic.twitter.com/mdcW9iggPk
— Bar and Bench (@barandbench) March 5, 2026
Consequently, the court mandated Akasa Air to pay ₹1,08,80,000 for lost income, asserting that the travel agent was denied a genuine and foreseeable commercial opportunity to earn during the peak holiday season due to Akasa Air’s unlawful cancellation.
The court stated that “the defendant’s behavior constitutes a breach of contract” and noted that the travel agent had a legitimate expectation of revenue from the confirmed group booking. Considering the reservation was made during peak travel times, the judge found the loss to be foreseeable.
“Akasa Air acknowledges the order issued by the Commercial Court at Saket, New Delhi, regarding a commercial dispute with a travel agency. We respect the judicial process; however, we are currently reviewing the comprehensive order with our legal counsel,” stated the airline’s representative.
“Akasa Air is committed to fair and transparent dealings with all our travel partners who are essential to our ecosystem. As this matter is currently under further legal scrutiny and potential appellate processes, we will refrain from making additional comments at this time,” it added.
