Qantas Settles Suit Over Credits For Cancelled Flights

SYDNEY, March 13 (Bernama-Xinhua) -- Australian flag carrier Qantas said on Friday it had settled with customers who filed a class action lawsuit against the airline over flight cancellations during the COVID-19 pandemic, reported Xinhua.

Qantas said in a statement it has agreed to pay AUD105 million (US$74.3 million) to affected customers under the terms of the settlement.

The class action suit lodged by law firm Echo Law in Australia's Federal Court in 2023 alleged that Qantas had breached its contract with customers by providing flight credits instead of cash refunds as compensation for flights that were cancelled between Jan. 1, 2020, and Nov. 1, 2022.

Additionally, it alleged that Qantas engaged in unconscionable, misleading or deceptive conduct and unlawfully benefited by holding customer funds.

Qantas said the settlement is expected to be paid in the first half of the 2026-27 financial year and will be recognised in its underlying earnings.

In 2024, the airline agreed to pay AUD120 million Australian dollars (US$84.9 million) in penalties and compensation after admitting it had offered and sold tickets for flights it had already decided to cancel between 2022 and 2024.

-- BERNAMA-XINHUA