Virgin Australia faces calls to extend travel credits expiry date

Virgin Australia is facing calls to reverse its decision to expire COVID travel credits in the coming weeks.

Customers were issued with the credits after bookings between April 21 in 2020 and July 31 in 2022 were cancelled due to COVID-19 restrictions.

Those with a travel credit must book and complete their journey before June 30.

Senator Bridget McKenzie has called on the aviation company to remove the expiry dates, provide further extensions or offer customer refunds where credits remain unused.

Virgin Australia has previously extended the deadline for the travel credits.

“COVID travel credits are not loyalty points, they are customer money,” Senator McKenzie said.

“Virgin customers stepped up during one of the most difficult periods in aviation history.

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“Many accepted credits rather than refunds to support the industry and keep airlines operating.

“Now, Australians are being told that if they cannot use those credits before June 30, that money disappears.

“This is simply not fair.”

McKenzie said regional Australians could be disproportionately affected by the current expiry dates.

“For regional Australians, travel is not always discretionary, it is often essential for healthcare, work, family and business,” she said.

“These communities should not be penalised because they have fewer opportunities to travel.

“If Virgin can hold approximately $93 million in unused customer credits, Australians deserve answers about how much of that money is expected to return directly to the company rather than back to consumers.”

A Virgin Australia spokesperson said more than 90 per cent of COVID credits have been redeemed by passengers “reflecting strong uptake over the past four years”.

“From the outset, Virgin Australia has made COVID credits very easy to use, offering customers the ability to use their credits on all flights operated by Virgin Australia, as well as flights on its partner airlines,” a spokesperson told nine.com.au.

“Additionally, these credits could be used for passengers not on the original booking, such as friends and family members.

The airline said it had been extensively reaching out to customers to remind them to use their credits.

“Virgin Australia has undertaken extensive direct outreach and provided customers with multiple reminders to encourage redemption,” it said.

“Despite extensive efforts and regular reminders to our customers, the remaining credit balances are seeing almost no usage. Over 90 per cent of remaining accounts with COVID credits have had no activity for over three years.

“Any unused credit can still be used on future flights up until June 30, with Virgin Australia or our partners, either for the named individual or for a family member or friend.”

The push comes after rival airline Qantas agreed to a $105 million settlement after a class action was brought against the airline over its controversial COVID-19 flight credits.

The sum, which is subject to approval by the Federal Court of Australia, comes with what the airline says is “no admission of liability”.