Qantas has reached a $105 million settlement for passengers who received flight credits instead of refunds. This affects domestic and international travelers whose trips were cancelled during the COVID-19 pandemic. The move offers a structured process for passengers to claim compensation for disrupted travel plans.
During the early pandemic, Qantas and other airlines issued flight credits after widespread cancellations. Many travelers struggled to use these credits, leading to frustration and delays in reclaiming funds. The class action filed in 2023 claimed that offering credits instead of cash refunds violated Australian consumer law.
The settlement, pending Federal Court approval, allows Qantas to distribute funds through a court-appointed administrator. Passengers will receive compensation based on the original booking value, ensuring fairness across domestic and international flights. Payments are expected in the first half of fiscal 2027, following court confirmation.
In August 2023, Qantas removed expiry dates on flight credits. This change lets travelers request refunds indefinitely, simplifying the process. The settlement reinforces this policy by establishing a clear, legal path to compensation.
This case highlights the importance of understanding airline refund policies. Travel disruptions may affect passengers’ plans and insurance claims. Qantas’ settlement also signals how airlines must adapt policies during global crises, protecting customer rights while managing operational challenges.
Passengers should watch official Qantas and Federal Court updates for claim instructions. The settlement clarifies procedures for those holding pandemic-era credits and ensures legal recourse for disrupted travel.
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