Qantas Agrees to $105 Million Settlement in COVID-19 Flight Credit Class Action

Qantas has agreed to a $105 million settlement in a class action lawsuit concerning flight credits issued during the COVID-19 pandemic. The agreement is contingent on Federal Court approval and includes no admission of liability from the airline.

Qantas announced the $105 million settlement to address a class action lawsuit related to its COVID-19 flight credits. The agreement requires approval from the Federal Court of Australia, and Qantas maintains no admission of liability as part of the settlement terms.

Background of the Lawsuit

The class action was initiated by Echo Law in August 2023. It focused on Qantas flights scheduled between January 1, 2020, and November 1, 2022, that were cancelled by the airline. The legal action alleged that Qantas breached contractual obligations by providing restricted flight credits instead of cash refunds to customers whose flights were cancelled due to COVID-19 travel restrictions.

Customer Compensation

Andrew Paull, a partner at Echo Law, stated that the settlement is intended to provide compensation to hundreds of thousands of Qantas customers. This $105 million sum is in addition to Qantas's prior commitment to offer refunds to all holders of COVID-19 credits. Eligible customers will be able to seek further compensation beyond their existing refund entitlements.

Next Steps and Financial Impact

Upon approval by the Federal Court, Echo Law and Qantas will communicate with affected customers, providing information about the settlement and details on how to claim their share of the compensation. Qantas has stated that provisions for this settlement have been made and will be reflected in future earnings reports. An increase acknowledging the settlement is expected to be recognized outside of underlying earnings in the second half of the 2026 financial year.