Australian national carrier Qantas Airways has reached a landmark settlement of A$105 million (approximately £55 million or $74 million) to resolve a class action lawsuit concerning its refund practices during the COVID-19 pandemic. The legal action was initiated on behalf of passengers whose flights were cancelled between 2020 and 2022, alleging the airline improperly issued travel credits instead of providing timely cash refunds.
Echo Law, the firm leading the class action, asserted that Qantas engaged in misleading conduct by withholding refunds that customers were legally entitled to receive. The settlement amount nearly doubles the A$55 million that Qantas had previously anticipated paying, as indicated in its February financial reports. Notably, the airline agreed to the settlement without admitting liability, maintaining this position in its Friday statement.
The resolution awaits formal court approval, after which detailed claim procedures will be communicated to affected customers. This development follows Qantas’s 2023 policy change removing expiration dates from pandemic-era flight credits, enabling immediate cash refund requests.
In a related legal matter, Echo Law is pursuing similar action against budget carrier Jetstar, alleging comparable practices regarding travel credit valuations. Meanwhile, Qantas continues to address recent regulatory challenges, including a record A$90 million fine imposed in August 2025 for unlawfully terminating approximately 1,800 ground staff during the pandemic—the largest penalty ever levied by Australian courts for industrial relations violations. CEO Vanessa Hudson has publicly apologized for the workforce reductions, acknowledging the harm caused to employees and their families.