Jetstar faces class action over claims it owes customers refunds for cancelled flights during COVID-19

Jetstar is facing a class action lawsuit on behalf of the hundreds of thousands of customers whose flights were cancelled during the COVID-19 pandemic.

Echo Law lodged a claim in the Federal Court on Wednesday alleging the airline did not refund customers’ payments for the cancelled flights.

Partner Andrew Paull said customers were forced to hold hundreds of millions of dollars in restricted travel credits, something they did not agree to in the airline’s terms and conditions.

“The right thing for Jetstar to do when it cancelled all those flights was to return its customers’ money without delay,” he said.

The class action is seeking refunds and compensation for affected customers, claiming travel restrictions “frustrated” Jetstar travel contracts and caused them to be automatically terminated and, therefore, customers should be able to automatically recover the money paid.

It also alleged Jetstar’s failure to issue refunds was a breach of contract, and claimed the airline breached Australian Consumer Law by misleading customers about their rights amid widespread COVID cancellations.

Paull claimed the airline “enjoyed the significant financial benefits” of holding customers’ money while they were unable to fly.

“Many Jetstar customers ended up paying the airline more than their original booking to use their credits on new fares, as they were led to believe they had little choice but to do that or else lose the value of the flights they paid for,” he said.

The law firm was behind a separate class action against Qantas last year over its COVID-19 credits, which it claimed should have been issued as cash refunds instead.

“Like Qantas, we allege Jetstar breached the law by failing to be transparent and by failing to refund its customers,” Paull said.

“It held onto ordinary Australians’ money and expected customers to just be happy with credits, which we allege it was not entitled to do.

“It now needs to be held accountable and refund that money with interest.”

A Jetstar spokesperson said the airline would review the class action claims.

“Last year we removed expiry dates for COVID vouchers so they can be used indefinitely,” they said.

“These vouchers are also multi-use, meaning they can be used across multiple bookings and for multiple people.”

Jetstar customers can check their voucher balance online.

Customers who wish to register their interest in the class action can visit www.echolaw.com.au/jetstar.