Qantas settles major COVID credits lawsuit
Summary
Qantas has settled a class action lawsuit for $105 million concerning flight credits issued to customers whose flights were cancelled due to COVID-19 travel restrictions. The lawsuit, filed by Echo Law in August 2023, represented “hundreds of thousands” of customers who were offered flight credits instead of cash refunds. Andrew Paull of Echo Law stated the settlement will provide compensation to affected customers, in addition to Qantas’ existing commitment to offer refunds. Qantas maintains that the settlement does not constitute an admission of liability and had already made a financial provision for the matter. The settlement requires Federal Court approval, with payments expected in the first half of FY27. In comparison, Virgin Australia holds approximately $93 million in unused flight credits, most of which have been redeemed, with the remainder expiring at the end of June.
(Source:Australian Aviation)