Qantas shares hit nearly 11-month low

The news: Qantas has apologised for a drop in standards during its post-COVID recovery and says it understands the public's disappointment, following the ACCC's decision to launch legal action against the national carrier last week.

The numbers: The ACCC launched Federal Court action against Qantas over allegations the airline continued to sell flights for weeks — and in some cases up to 47 days — after it had cancelled them. The allegations apply to more than 8,000 scheduled flights.

The context: Qantas has recently faced scrutiny, including at Senate estimates, over a range of issues such as government support for the carrier, alleged hoarding of unused slots at Sydney airport and the expiration of COVID-period flight credits, which have since been extended indefinitely. The airline acknowledged that "Qantas’ reputation has already been hit hard on several fronts" before the ACCC's announcement. It did not, however, directly respond to the ACCC's allegations the carrier had continued to sell tickets on already-cancelled flights but noted flights had been cancelled and outlined its cancellation policy.

What they said: "Some commentary has suggested that Qantas was engaged in charging a ‘fee for no service’ due to cancelled flights over this period. Our longstanding practice is that when a flight is cancelled, customers are offered an alternative flight as close as possible to their original departure time, or a refund," Qantas said in its statement.