Qantas Airways has agreed to pay A$105m (£55m; $74m) to settle a class action lawsuit alleging the airline failed to provide cash refunds for flights cancelled during the Covid-19 pandemic. The settlement relates to passengers whose flights were cancelled between 2020 and 2022 and who were issued travel credits instead of receiving cash refunds.
The airline said on Friday that it had agreed to the settlement with no admission of liability. The agreement remains subject to court approval.
Class Action Focused On Refund Rights
The lawsuit was filed on behalf of passengers who said the airline did not provide refunds promptly after flights were cancelled during the pandemic. The case was led by Echo Law.
According to the legal firm, the airline breached its contractual obligations by offering travel credits rather than issuing refunds in cash. Echo Law argued that the airline also engaged in misleading or deceptive conduct regarding passengers’ refund rights under Australian consumer law.
The firm said the airline unlawfully benefited by holding customer funds for extended periods that should have been refunded earlier.
Details on how affected passengers can claim refunds will be announced once the settlement receives court approval, Echo Law said.
Settlement Higher Than Expected
The payment is almost double the amount the airline previously indicated it expected to pay. In its half-year results released in February, the carrier had told investors it anticipated a settlement cost of about A$55m.
The airline also noted that it made changes to its refund policy after the pandemic period. In 2023, it removed the expiry date on travel credits issued during the pandemic, allowing customers to convert those credits into cash refunds.
Separate Case Targets Budget Airline Jetstar
Echo Law is also leading a separate class action against Jetstar over similar allegations concerning flight cancellations during the pandemic.
The legal firm claims the airline issued travel credits that were worth less than the refunds passengers were entitled to receive.
Echo Law said the airline benefited financially by retaining customer funds. According to the BBC, Jetstar is continuing to defend the case.
Previous Legal Penalty Over Pandemic Job Cuts
The refund settlement follows another major legal ruling involving the airline. In August 2025, the airline was fined A$90m for unlawfully dismissing more than 1,800 ground workers during the pandemic.
The penalty was the largest imposed by an Australian court for breaches of industrial relations laws.
At the time, Qantas said it accepted the decision and acknowledged the impact of the dismissals. Vanessa Hudson said the company apologised to the 1,820 ground handling employees and their families who were affected by the layoffs.
Featured image credits: Wikimedia Commons
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