Jetstar ‘misled’ NZ customers on compensation for flight delays, cancellations: NZ regulator

New Zealand’s competition watchdog will file charges against Qantas’ low-cost Jetstar brand over claims it misled customers about their rights to compensation when flights were delayed or cancelled for reasons within the airline’s control.

The Commerce Commission believes Jetstar’s communications likely discouraged consumers from seeking compensation they were entitled to, and that the airline likely denied legitimate claims.

“The Civil Aviation Act is clear that airlines have a responsibility to reimburse customers for loss caused by cancellations or delays on New Zealand domestic flights that are within the airline’s control,” Commerce Commission’s general manager of competition, fair trading and credit Vanessa Horne said.

This includes delays or cancellations that are due to staffing or mechanical issues.

The regulator said in these circumstances, customers were entitled to reimbursement for reasonable costs caused by the delay. This may include the cost of meals, accommodation, and other costs paid to get to the destination — up to 10 times the cost of the ticket.

For international flights, consumers are entitled to the reasonable costs arising from the delay. This can include replacement flights, accommodation, and food, up to a maximum of $NZ11,000 ($10,089) set under the Montreal Convention, which establishes airline liability.

The Commission will be filing charges in the Auckland District Court shortly.

Jetstar said it began reviewing past claims late last year and contacted impacted customers to ensure they were correctly reimbursed.

“We’re deeply sorry to have let our New Zealand customers down by errors made in assessing some compensation claims for disrupted flights in 2022 and 2023, as our operations restarted following COVID,” a company statement said.