Qantas has reached an agreement to settle the class action regarding flight credits during Covid that was brought against the airline in August 2023.

The settlement is subject to approval by the Federal Court of Australia.

Under the terms of the settlement agreement, Qantas has agreed to pay $105 million, with no admission of liability.

The class action related to flights scheduled to depart between 1 January 2020 and 1 November 2022 that were cancelled by Qantas, and included allegations that the airline breached its contractual obligations regarding refunds.

In August 2023, Qantas removed the expiry date on flight credits issued during Covid¹, meaning customers can request a cash refund indefinitely.

Qantas has previously made a provision for this matter and an increase reflecting the settlement will be recognised 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.

1 For Qantas customers, a ‘Covid Credit’ refers to travel credits for bookings up to and including 31 September 2021.

Featured image credited to Qantas