Ask Onix
Qantas reaches A$105m settlement over pandemic refunds
Australia's national airline, Qantas, has agreed to pay A$105 million (£55 million; $74 million) to resolve a class action lawsuit brought by passengers who were denied cash refunds for flights cancelled during the Covid-19 pandemic.
Background of the lawsuit
The legal action was filed on behalf of customers whose flights were cancelled by Qantas between 2020 and 2022. Instead of issuing cash refunds, the airline provided travel credits, a practice challenged by the plaintiffs.
Echo Law, the firm leading the class action, accused Qantas of breaching customer contracts by failing to offer timely refunds and engaging in "misleading or deceptive conduct" regarding passenger rights under Australian law.
"Qantas unlawfully benefited by holding significant customer funds that should have been refunded," Echo Law stated.
Settlement details and next steps
Qantas announced the settlement on Friday, emphasising that it includes "no admission of liability." The agreement is nearly double the A$55 million the airline had initially set aside for the case, as disclosed in its February financial results.
Final approval of the settlement rests with the court. Echo Law confirmed that details on how affected customers can claim refunds will be released soon.
Policy changes and past controversies
In 2023, Qantas removed expiry dates on pandemic-era flight credits, allowing customers to request cash refunds immediately. The airline has faced multiple legal challenges in recent years, including a record A$90 million fine in August 2025 for illegally dismissing over 1,800 ground workers during the pandemic.
At the time, Qantas acknowledged the ruling, stating it held the company accountable for actions that caused "real harm" to employees. Chief Executive Vanessa Hudson issued an apology to the affected workers and their families.
Ongoing legal action against Jetstar
Echo Law is pursuing a similar class action against Jetstar, Qantas' budget subsidiary, alleging the airline issued travel credits worth less than the refunds customers were entitled to.
"Jetstar has financially benefited at its customers' expense," Echo Law claimed.
BBC News reports that Jetstar is continuing to defend the case.
