More than 1 million Qantas customers contacted over $105m compensation
More than 1 million Qantas customers are being notified via text or email that they may be eligible for compensation in a $105 million flight credit class action settlement.
The Federal Court of Australia has issued notices to impacted customers regarding flights cancelled during the COVID-19 pandemic between January 2020 and November 2022.
A text sent to impacted customers following the Qantas class action settlement. Nine
Those who are entitled to compensation from the airline have until 4pm on October 2 to register for a portion of payment from the settlement.
“Even persons who have used their Qantas flight credit or were ultimately refunded for their flight are eligible for a settlement payment if you meet the criteria,” Echo Law said in an email.
“This is because the case included allegations that group members ought to have received a refund and not a flight credit, that there were delays in paying refunds and that, where customers used their flight credit, that this was not the same as receiving a refund.”
Notices began arriving in customers’ inboxes on June 29 and are expected to be sent to every impacted person by July 10.
Impacted passengers who register are guaranteed to receive at least $50 each from the settlement, Echo Law said.
The settlement agreement will be heard in court for approval on October 13.
Echo Law expects settlement payments will not be made until December 2026 at the earliest and “potentially not until some months after that time”.
Qantas settled the Covid credit class action lawsuit in March this year.
The class action settlement was regarding cancelled flights between January 2020 and November 2022. Wolter Peeters
It was alleged that Qantas breached its legal obligations by failing to provide customers with refunds for cancelled flights within a reasonable time and instead issued flight credits.
The settlement is still subject to approval by the Federal Court of Australia and comes with what Qantas says is “no admission of liability”.
The airline removed the expiry date on using Covid credits in 2023.
“In addition to these payments, customers with unclaimed Covid credits can come forward at any time to claim a refund,” Qantas added in a statement.
“We removed the expiry date in 2023, and we encourage customers to claim a refund by contacting us.”
Qantas also said it had made provisions for a potential payout, which would be reflected in future earnings reports.
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