Share and Follow
The financial settlement awaits the nod from the Federal Court of Australia, though Qantas emphasizes that this does not imply any acceptance of responsibility.
The legal proceedings revolved around flights that were planned from January 1, 2020, to November 1, 2022, which Qantas cancelled. The claims suggested that the airline failed to uphold its refund obligations to passengers.
Andrew Paull, a partner at Echo Law, remarked that the resolution would provide compensation to hundreds of thousands of affected Qantas customers.
Echo Law initiated the lawsuit against Qantas in August 2023.
“The foundation of this class action was the assertion that Qantas customers were entitled to receive cash refunds for flights cancelled due to the COVID-19 travel restrictions,” Paull explained.
“Instead of those refunds, Qantas customers were issued with restricted flight credits.
“The settlement sum is in addition to Qantas’ public commitment, given shortly after the class action was commenced, 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.”
Once approved by the Federal Court, Echo Law and Qantas will notify affected customers of the settlement and their rights, including how to claim their share of the compensation.
In a statement, Qantas said it had made provisions for a potential payout, which would be reflected in future earnings reports.
“An increase reflecting the settlement will be recognised outside of underlying earnings in the second half of FY26,” the statement said.
“The settlement amount will be paid to a court-approved settlement administrator, with payment currently expected in the first half of FY27.”