The issue arose when ABS Tours and Travels secured flights on the Delhi–Goa and Goa–Delhi routes for the busy December–January vacation season in 2023.
Court documents reveal that the plaintiff acquired eight groups of tickets, each comprising 80 seats, for flights from Delhi to Goa and back, scheduled on various dates throughout the Christmas and New Year holiday period, amounting to a total of 640 tickets.
The plaintiff claimed to have 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 cancelled the reservation nearly a month after it was confirmed. While the advance payment was eventually refunded, it was returned over three months later, prompting the travel agency to initiate legal proceedings to recover its losses due to the cancellation.
District Judge Commercial Lalit Kumar of the Saket Courts Complex ruled in favor of the travel agency. Citing the Indian Contract Act of 1872, the court determined that a legally binding agreement was established once the airline generated Passenger Name Records (PNRs) and accepted the advance payment.
The court noted that the cancellation denied the travel agency a legitimate opportunity to earn revenue during the peak holiday season, a time when flight demand to popular tourist destinations like Goa usually 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 earnings, stating that the travel agency was deprived of a real and foreseeable opportunity to profit during the busiest holiday season due to the airline’s unlawful cancellation.
The court articulated that “the defendant’s conduct amounts to breach of contract” and emphasized that the travel agent had a reasonable expectation of generating revenue from the confirmed group reservation. Given the timing of the reservation during a busy travel period, the judge deemed the loss predictable.
“Akasa Air acknowledges the order passed 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 detailed order with our legal counsel,” an airline spokesperson stated.
“Akasa Air is committed to fair and transparent dealings with all our travel partners, who are an essential component of our ecosystem. As this matter is under further legal scrutiny and potential appellate actions, we will refrain from making additional comments at this time,” it added.
