Qantas Settles COVID Refund Lawsuit for 105 Million AUD

Qantas Airways announced on Friday that it has agreed to pay 105 million Australian dollars to settle a class action lawsuit brought by passengers over the airline's handling of refunds for flights canceled during the COVID-19 pandemic. The settlement addresses claims related to domestic and international flights canceled between January 2020 and November 2022, during which the airline issued travel credits instead of cash refunds to affected Australian customers.

The lawsuit, filed in 2023 by the legal firm Echo Law, accused Qantas of breaching contractual obligations and Australian consumer law by failing to provide prompt cash refunds. Passengers alleged the airline engaged in misleading and deceptive conduct by promoting travel credits, which often came with expiration dates, rather than returning funds immediately. Echo Law further claimed that Qantas unlawfully benefited by retaining significant amounts of customer money for extended periods, sometimes years, while the aviation sector was grounded by pandemic restrictions.

Under the terms of the agreement, Qantas makes no admission of liability. The payment, which exceeds the airline's earlier estimate of 55 million...