QANTAS AIRWAYS has agreed to pay A$105 million ($74 million) to resolve a class action lawsuit related to cancelled flights during the Covid-19 pandemic.
The case involved passengers whose flights were cancelled between 2020 and 2022. Instead of issuing cash refunds, the airline provided travel credits. Many customers argued that they should have received direct refunds.
A legal firm representing the passengers claimed the airline breached its contract obligations. According to the claim, the company failed to provide timely cash refunds and instead offered credits that customers had to use later.
Lawyers also argued the airline engaged in misleading conduct about customers’ refund rights under Australian consumer law. They said the company benefited by holding a large amount of customer funds for several years.
The airline agreed to settle the case without admitting liability. The settlement amount is almost double the sum the company expected to pay earlier this year.
The agreement still requires court approval. Once approved, details about how affected passengers can claim refunds will be announced.
In 2023, the airline removed the expiry dates on pandemic-era flight credits. This change allowed customers to request cash refunds if they preferred.
The same law firm has also launched a similar case against Jetstar Airways. The lawsuit claims the budget airline issued travel credits that were worth less than the refunds customers were entitled to receive. The airline is continuing to defend the claim.
The settlement follows another major legal issue involving the airline. In August 2025, an Australian court fined the company A$90 million for unlawfully dismissing more than 1,800 ground staff during the pandemic.
After the ruling, the airline acknowledged the harm caused and apologized to the affected employees and their families.
