Qantas makes $105m settlement in COVID-19 flight credit class action

Qantas has agreed to pay a mammoth $105m settlement in a class action regarding flight credits for cancelled flights during the COVID-19 pandemic.

The flying kangaroo has settled the class action, which was lodged in the Federal Court by Echo Law in August 2023.

The action was brought on behalf of hundreds of thousands of Qantas customers whose flights were cancelled during the pandemic.

The flights were scheduled to depart between January 1, 2020 and November 1, 2022 but were cancelled by Qantas. The airline was accused of breaching its contractual obligations regarding refunds.

“This class action was based on allegations that Qantas customers were contractually entitled to cash refunds when their flights were cancelled due to Covid-19 travel restrictions,” Echo Law partner Andrew Paull said in a statement.

“Instead of those refunds, Qantas customers were issued with restricted flight credits.

“This is a very significant financial settlement which will see compensation put into the hands of hundreds of thousands of Qantas customers. We’re very pleased to have been able to achieve this result.”

Mr Paull explained that under the settlement, eligible customers would now be able to seek compensation in addition to any existing refund rights.

“The parties will seek orders from the court to directly notify affected group members of the settlement and their rights,” he said.

“Those notices will include details regarding how eligible group members can claim their share of the settlement, if approved by the court.”

The airline said in a statement on Friday it had agreed to pay $105m, with no admission of liability.

In August 2023, Qantas removed the expiry date on flight credits issued during Covid-19, meaning customers can request a cash refund indefinitely.