Qantas to Pay $74M in Settlement Over Covid Travel Voucher Refunds

Qantas Airways has agreed to pay approximately $74 million to settle a class action lawsuit related to travel credits issued during the Covid‑19 pandemic instead of cash refunds for cancelled flights. The settlement aims to resolve claims from passengers who were given vouchers after their flights were cancelled during pandemic travel disruptions.

The lawsuit alleged that the Australian flag carrier required many customers to accept travel credits rather than providing immediate cash refunds when flights were cancelled. Plaintiffs argued that the practice effectively allowed the airline to retain customers’ money for extended periods while imposing restrictions on how the credits could be used.

Under the proposed settlement, a compensation fund will be established to reimburse eligible passengers who received pandemic‑era travel vouchers. Payments will be distributed through a formal claims process and remain subject to approval by the relevant court.

The case is part of broader scrutiny of Qantas’ pandemic‑era policies. The airline has previously faced regulatory action from the Australian Competition and Consumer Commission (ACCC) over the sale of tickets for flights that had already been cancelled, which resulted in significant fines and customer compensation programs. Qantas management says resolving these disputes is part of rebuilding customer trust following the disruptions caused by Covid‑19.