Australia’s Qantas Airways said on Friday it has agreed to settle a class action related to flight credits issued during the COVID-19 pandemic for A$105 million ($74.26 million), with no admission of liability.
Here are some details:
- The settlement, subject to approval by the Federal Court of Australia, relates to flights scheduled to depart between January 2020 and November 2022 that were cancelled by the airline.
- The settlement is higher than the A$55 million provision that Qantas Airways mentioned in its latest half-year results in February for the flight credits class action.
- Australia’s flag carrier said any additional settlement-related charge would be recognised outside underlying earnings in the second half of fiscal 2026, which would have an impact on net earnings.
- Echo Law, which brought the class action on behalf of affected customers, said on its website that the parties had agreed to settle the case.
- The lawsuit, filed in August 2023, included allegations that Qantas breached contractual obligations by failing to provide refunds for cancelled flights during the pandemic.
- In August 2023, Qantas removed the expiry date on flight credits issued during the pandemic, allowing customers to request a cash refund indefinitely.
- The airline said the settlement amount would be paid to a court-approved administrator, with payment currently expected in the first half of fiscal 2027.
($1 = 1.4140 Australian dollars)
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Source: www.myjoyonline.com