More than one million Qantas customers are eligible for a share of a $105 million compensation payout following a class-action settlement [1], [2].
The settlement addresses a significant breach of consumer law during the pandemic, establishing a legal precedent for how airlines handle refunds during global crises.
The payout follows a claim that Qantas breached Australian consumer law by issuing flight credits instead of cash refunds for flights cancelled during the COVID-19 pandemic between 2020 and 2021 [1], [2]. The airline's practice of providing credits rather than returning funds to passengers led to the legal action and the subsequent settlement announced in 2024 [1], [2].
A total of $105 million has been allocated to the compensation pool [2]. This fund is intended to reimburse the more than one million passengers who were affected by the airline's refund policies during the pandemic period [2].
Under Australian consumer law, customers are generally entitled to a refund when a service cannot be provided. The class-action lawsuit argued that the mandatory issuance of credits was an unlawful substitute for the monetary refunds passengers were owed [1], [2].
Eligible customers will receive a portion of the settlement based on the terms of the class-action agreement. The payout aims to rectify the financial loss experienced by travelers who were unable to use their credits, or who preferred a direct refund of their travel expenses [1].
“More than one million Qantas customers are eligible for a share of a $105 million compensation payout”
This settlement underscores the primacy of consumer protection laws over corporate policy, even during unprecedented global disruptions. By forcing a payout for flight credits, the ruling discourages airlines from unilaterally altering refund terms during emergencies and reinforces the legal requirement for liquid refunds when services are cancelled.
