Qantas settles flight credits class action lawsuit

By Andrew Curran.

Qantas will pay AUD105 million (USD73.4 million) to settle a class action lawsuit stemming from the airline’s policy to issue flight credits rather than refunds for cancelled flights during the Covid-19 pandemic.

Qantas announced the settlement via a March 13, 2026, Australian Stock Exchange filing.

“The class action related to flights scheduled to depart between 1 January 2020 and 1 November 2022 that were cancelled by Qantas and included allegations that the airline breached its contractual obligations regarding refunds,” the filing reads.

The airline has not admitted any liability.

No refunds contrary to Australian consumer law

Australian law firms Echo Law and Piper Alderman brought the case and alleged the refusal to provide refunds was not only contrary to Australian consumer law, but the flight credits proved difficult to use, stacked with unreasonable conditions, and were ultimately designed to profit Qantas.

Echo Law said it was pleased with the outcome, which remains subject to approval by Australia’s Federal Court.

“The Court will be asked to approve a notice to group members confirming the details of the proposed settlement and setting out what group members must do to claim their share,” reads a statement from Echo Law.

Echo Law partner Andrew Paull said it was “a significant settlement that will see a large amount of money put into the hands of Qantas customers.”

He estimates hundreds of thousands of people could be eligible for compensation.

Cleaning up Alan Joyce's mess

Qantas issued around AUD2 billion (USD1.4 billion) in flight credits rather than refunds over the course of the pandemic. Around 15% of that amount remains unused. An attempt by Qantas to keep that money in late 2023 was reversed after a public outcry.

The settlement draws another line under the Alan Joyce era at Qantas. The now former CEO was in charge when several questionable cost-saving decisions, including the illegal outsourcing of ground worker's jobs; selling tickets on already cancelled flights; and refusing to issue refunds, came back to bite the airline reputationally and financially.

Incumbent CEO Vanessa Hudson has spent much of the last 18 months cleaning up the mess.

In its filing, Qantas said it had already made an AUD55 million (USD38.5 million) provision for the class action payment and will make another provision to recognise the remainder.

The airline says the money will be paid to a court-approved settlement administrator, most likely in the second half of calendar 2027.

The matter returns to court for mention on March 23.

Photo: Qantas.

Contact the writer: andrew@aerosouthpacific.com