Qantas agrees to pay $105m to settle class action over Covid flight credits
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The news: Qantas has agreed to pay $105 million to settle a class action over its issuing of travel credits for cancelled flights during Covid, that was brought against the airline in August 2023.
The context: The settlement, which is subject to approval by the Federal Court, includes no admission of liability by Qantas.
The class action alleged the flag carrier breached its contractual obligations by cancelling flights but issuing restricted travel credits instead of cash refunds between 1 January 2020 and 1 November 2022.
In August 2023, Qantas removed the expiry date on flight credits issued during Covid, meaning customers can request a cash refund indefinitely.
Qantas has previously made a provision for the class action and the settlement will be recognised outside of underlying earnings for the second half of FY26. Payment is currently expected in the first half of FY27.
The source: ASX
