Qantas to pay $105 million to settle refund class action

Qantas has agreed to settle a class action lawsuit for $105 million over airline credits issued for flight cancellations due to COVID-19.

A class action is a type of lawsuit where many people are represented by one entity.

The airline was alleged to have breached its refund obligations by providing airline credits to customers whose flights were cancelled due to the pandemic, instead of cash.

Qantas has not admitted liability.

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The class action case was brought to the Federal Court in August 2023.

It alleged Qantas breached its contractual obligations by providing travel credits rather than cash refunds on flights cancelled between 1 January 2020 and 1 November 2022.

The same month the lawsuit was filed, the airline removed its ‘COVID Credits’ and allowed cash refunds.

This week, the airline settled the case, agreeing to pay $105 million to the customers who signed up for the class action.