Qantas has agreed to pay a $74 million (AUD $105 million) settlement after a class action was brought on behalf of customers who received travel credits rather than cash refunds when flights were cancelled during the COVID-19 pandemic.
On March 13, 2026, Echo Law, which provided legal representation to affected customers, confirmed that an agreement had been reached with Qantas, covering cancelled flights between January 1, 2020, and November 1, 2022.
“The settlement agreement is subject to Court approval and is made with no admission of liability,” an Echo Law representative said.
The class action alleged that Qantas “breached its contracts with customers by failing to provide cash refunds for cancelled flights (or failing to provide refunds in a timely manner) and instead providing travel credits”.
It also alleged that Qantas had “engaged in misleading or deceptive conduct in contravention of the Australian Consumer Law by misleading customers as to their rights on cancelled flights”.
In a statement, Qantas confirmed that it has reached an agreement to settle the class action that was brought against it in August 2023.
“In August 2023, Qantas removed the expiry date on flight credits issued during COVID, meaning customers can request a cash refund indefinitely,” the airline said in a statement on March 13, 2026.
Qantas had set aside legal provisions for around $39 million (AUD $55 million), according to the airline’s half-year 2026 financial report.
“Qantas has previously made a provision for this matter, and an increase reflecting the settlement will be recognized outside of underlying earnings in the second half of FY26. The settlement amount will be paid to a Court-approved settlement administrator, with payment currently expected in the first half of FY27,” the airline added.
Echo Law is also set to bring similar claims for customers who held tickets for Jetstar flights cancelled due to COVID-19 travel restrictions.
