Qantas settles the COVID flight credits dispute for $105 million.
A class action lawsuit concerning flight credits given out during the COVID-19 outbreak has been settled by Qantas. The Federal Court of Australia must yet approve the settlement.
Qantas has agreed to pay $105 million in accordance with the provisions of the agreement, but it maintains that this does not amount to an admission of liability.
The airline canceled flights that were supposed to fly between January 1, 2020, and November 1, 2022. The class action was launched in August 2023. Allegations that Qantas had violated its contractual duties to reimburse impacted passengers were part of the dispute.
Customers can now obtain cash refunds indefinitely after Qantas eliminated the COVID-related flying credits’ expiration date in August 2023. According to the airline, a “COVID Credit” is a travel credit given for reservations made through September 31, 2021.
According to Qantas, the increase represents the settlement that is anticipated to be recognized outside of underlying earnings in the second half of FY26. The company had already established a financial provision for the matter. A court-approved settlement administrator will receive the settlement sum; payments are anticipated to occur in the first part of FY27.
