Qantas Agrees $74m Settlement Over COVID-19 Flight Refund Dispute
Australian airline Qantas Airways has agreed to pay A$105 million (about $74 million) to settle a class action lawsuit brought by passengers who said they should have received cash refunds for cancelled flights during the COVID-19 pandemic.
The legal action, filed on behalf of customers whose flights were cancelled between 2020 and 2022, alleged that the airline issued travel credits instead of refunding ticket costs in cash. The settlement amount is nearly double what the airline had earlier estimated it would pay, according to financial results released earlier this year.
In a statement, Qantas said it had reached the agreement “with no admission of liability.” The settlement still requires approval from the court before it can take effect.
Law firm Echo Law, which led the class action, said details about how affected customers can claim refunds will be announced after the court process is completed.
The lawsuit argued that the airline breached its contractual obligations by failing to provide prompt cash refunds for flights cancelled during the pandemic. Instead, passengers were given travel credits, a move the legal team claimed amounted to misleading or deceptive conduct under Australian law.
Echo Law also argued that by holding on to the funds for extended periods, the airline gained financially from money that should have been returned to customers.
Qantas said it had taken steps in 2023 to address the issue by removing expiry dates on pandemic-era flight credits, allowing customers to convert them into cash refunds.
The firm is also pursuing a similar class action against Jetstar Airways, a budget airline owned by Qantas, over claims that customers received travel credits worth less than the refunds they were entitled to. According to the legal team, the airline benefited financially at passengers’ expense by using that approach. Jetstar is continuing to contest the claims.
The settlement adds to a series of legal challenges faced by Qantas in recent years. In August 2025, the airline was ordered by an Australian court to pay a record A$90 million fine for unlawfully dismissing more than 1,800 ground staff during the pandemic.
Following that ruling, Qantas chief executive Vanessa Hudson said the company accepted the decision and acknowledged the harm caused to the affected workers and their families.
