Virgin Australia has revised the travel period for flight credits issued during the COVID-19 pandemic, extending the date by which flights booked with these credits must be taken. The change follows public criticism regarding the impending expiration of unclaimed credits valued at nearly $100 million.
Credit Issuance and Expiry Policy
- Virgin Australia issued flight credits to customers whose bookings were canceled due to COVID-19 restrictions. These credits were provided for bookings made between April 21, 2020, and July 31, 2022.
- Under the previous policy, credits had to be redeemed (booked) by June 30, 2026, with travel also required by that date.
- Under the updated policy, customers must still redeem their credits by June 30, 2026. However, flights booked with credits can now be taken up to late May 2027.
Unclaimed Credit Value
- According to a financial outlook released in late February, Virgin Australia held approximately $93 million in unclaimed COVID-19 flight credits.
- Virgin Australia CEO Dave Emerson stated that over $1 billion worth of COVID-19 credits have been redeemed, representing over 90% of all credits issued.
External Reactions
- Senator Bridget McKenzie, Shadow Minister for Infrastructure, Transport and Regional Development, criticized the original expiry dates, stating that COVID travel credits represent customer money and should not be forfeited.
- Peter Kernke, a Rockhampton resident holding a $412 credit, stated that the extension did not provide sufficient time to arrange travel, noting he had 11 days to use his credit.
- Andy Kelly, Communications and Campaigns Director for consumer advocacy group Choice, welcomed the decision but called for refunds to be offered to customers who are unable to use their credits.
Usage Instructions
- Credits must be spent by June 30, 2026.
- The credits can be used for flights on Virgin Australia and partner airlines for the credit holder, their friends, or family members. They may also be applied to travel extras.
- Credits are stored in a "travel bank" accessible via the Virgin Australia website or by phone. Customers can check their balance online or by contacting the guest contact centre at 13 67 89.
Industry Context
- This announcement follows Qantas agreeing to a $105 million settlement related to a class action over its COVID-19 flight credits, with no admission of liability.
- Qantas has stated that it allows customers to request a refund for credits from bookings made on or before September 30, 2021, but noted that refunds are not automatic because many original credit cards used for bookings have since expired.
- Jetstar, a subsidiary of Qantas, extended the validity of its COVID credits without a set expiration date.