Australia’s flag carrier Qantas Airways has agreed to pay A$105 million (£55 million; $74 million) to settle a class action lawsuit over flight credits issued during the COVID-19 pandemic.
Dispute Over Pandemic Refunds
The airline confirmed Friday, March 13, the settlement will resolve claims from passengers whose flights were cancelled between 2020 and 2022 but were offered travel credits instead of cash refunds. The agreement remains subject to court approval.
Qantas emphasised that the settlement was reached without any admission of liability.
The class action, led by law firm Echo Law, was filed on behalf of customers whose flights were cancelled during the global travel shutdown. Many affected passengers were travelling on services involving Sydney (SYD), Melbourne (MEL) and international destinations such as London Heathrow (LHR).
Claimants argued the airline breached its contractual obligations by failing to promptly issue cash refunds and instead providing travel credits. According to Echo Law, the carrier engaged in “misleading or deceptive conduct” regarding customers’ refund rights under Australian law.
The legal firm alleged that Qantas unlawfully benefited by holding large sums of customer funds that should have been refunded earlier.
Settlement Higher Than Expected
The A$105 million agreement is nearly double the amount Qantas had previously indicated it expected to pay. In its February financial results, the airline told investors it had estimated a settlement of about A$55 million.
Echo Law said details on how eligible passengers can claim compensation will be released once the court formally approves the settlement.
Qantas noted it had already removed expiry dates from pandemic-era travel credits in 2023, allowing customers to convert them into cash refunds.
Wider Legal Pressure
The settlement comes as Qantas faces broader scrutiny over decisions made during the pandemic.
In August 2025, an Australian court imposed a record A$90 million penalty on the airline for illegally dismissing more than 1,800 ground-handling workers. The ruling marked the largest fine issued under the country’s industrial relations laws.
Acknowledging the company’s actions caused “real harm,” Qantas CEO, Vanessa Hudson, previously apologised to affected employees.
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