$74M Blow: Qantas Settles Covid Voucher Refund Fight
Qantas agrees to a Covid travel refund settlement worth $74M after passengers were issued flight credits instead of cash for cancelled flights.
Qantas Airways has agreed to pay A$105m (£55m; $74m) to settle claims alleging that it should have issued cash refunds for flights cancelled during the Covid-19 pandemic.
This class-action lawsuit was filed on behalf of passengers whose flights were cancelled by the airline between 2020 and 2022, and who received travel credits instead of cash.
According to Qantas's results published in February, this settlement amount is approximately double the figure Qantas had expected to pay.
The national flag carrier stated on Friday that it has agreed to pay this sum "without admission of liability."
Echo Law, the legal firm leading this class-action lawsuit, said that the settlement is subject to court approval and that details regarding how customers can claim refunds will be released shortly.
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The firm had alleged that Qantas breached its contracts with customers by failing to provide timely cash refunds for cancelled flights, offering travel credits instead.
Echo Law stated that the airline engaged in "misleading or deceptive conduct" regarding customers' rights concerning cancelled flights—conduct that violates Australian law.
The firm further added that, by doing so, Qantas "illegally profited by holding onto a significant amount of customers' money for years—money that should, in fact, have been returned to the customers."
In its statement, Qantas noted that in 2023, it removed expiry dates on flight credits issued during the pandemic, thereby allowing customers to request immediate cash refunds.
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In its half-yearly report, the airline had informed investors that it expected to pay A$55m to settle this matter. Echo Law is also pursuing a similar class-action lawsuit against the Australian budget airline, Jetstar. It is alleged that Jetstar issued travel credits to customers that were of lower value than the refunds to which the customers were entitled.
Echo Law stated, "By operating in this manner, Jetstar has reaped significant financial gain at the expense of its customers."
In August 2025, Qantas was fined a record A$90 million for illegally outsourcing more than 1,800 ground staff jobs during the pandemic. This fine marked the largest penalty ever imposed by an Australian court for a violation of industrial relations laws. At the time, Qantas stated that it agreed to pay the fine and acknowledged that the ruling held it accountable for actions that caused "real harm" to its employees.
Qantas Group CEO Vanessa Hudson said, "We sincerely apologize to all 1,820 ground handling employees—and their families—who suffered harm as a result of this."
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