Qantas has agreed to pay AUD105 million (R1,2bn) to settle the class action brought in August 2023 over claims that it should have issued cash refunds for cancelled flights during the pandemic.
The lawsuit was made on behalf of passengers whose flights were cancelled between 2020 and 2022 and received travel credits instead of cash. The case alleged that Qantas had breached its contract by failing to provide cash refunds in a timely manner, and instead offered travel credits.
In August 2023, Qantas removed the expiry date on flight credits issued during COVID, meaning customers could request a cash refund indefinitely.
Qantas had already set aside funds for the matter, and the additional amount linked to the settlement will be recorded separately from underlying earnings in the second half of the 2026 financial year. The settlement will be paid to a court-approved administrator, with payment expected in the first half of the 2027 financial year.
The settlement is subject to approval by the Federal Court of Australia.
