Qantas settles COVID lawsuit for $A105 million

Qantas said it has reached an agreement to settle a class-action lawsuit regarding flight credits during COVID that was brought against the airline in August 2023. The settlement is subject to approval by the Federal Court of Australia. Under the terms of the settlement agreement, Qantas has agreed to pay $105 million, with no admission of liability. The class-action related to flights scheduled to depart between 1 January 2020 and 1 November 2022 that were cancelled by Qantas, and included allegations that the airline breached its contractual obligations regarding refunds. In August 2023, Qantas removed the expiry date on flight credits issued during COVID, meaning customers can request a cash refund indefinitely. Qantas has previously made a provision for this matter and an increase reflecting the settlement will be recognised outside of underlying earnings in the second half of FY26. The settlement amount will be paid to a Court-approved settlement administrator, with payment currently expected in the first half of FY27. Andrew Paull, a partner Echo Law which filed the lawsuit, said: “This class action was based on allegations that Qantas customers were contractually entitled to cash refunds when their flights were cancelled due to COVID travel restrictions. Instead of those refunds, Qantas customers were issued with restricted flight credits. This is a very significant financial settlement which will see compensation put into the hands of hundreds of thousands of Qantas customers. We’re very pleased to have been able to achieve this result. The settlement sum is in addition to Qantas’ public commitment, given shortly after the class action was commenced in August 2023, to provide refunds to all COVID credit holders. Under the settlement, eligible customers will now be able to seek compensation in addition to any existing refund rights.” The parties will seek orders from the Court to directly notify affected group members of the settlement and their rights. Those notices will include details regarding how eligible group members can claim their share of the settlement, if approved by the Court. For Editorial Inquiries Contact: Editor Matt Driskill at [email protected] For Advertising Inquiries Contact: Head of Sales Sally Passey at [email protected]