Qantas Airways has agreed to pay A$105 million (US$74 million) to settle a class action lawsuit accusing the airline of misleading customers and failing to provide cash refunds for flights cancelled during the Covid-19 pandemic.
The settlement covers Australian passengers whose domestic and international flights were cancelled between 2020 and 2022, during which the airline issued flight credits instead of refunds.
Under the terms of the agreement, Qantas will make the payment without admitting liability, the airline said in a statement on March 13.
The settlement remains subject to court approval, with the funds expected to be paid to an administrator in the first half of 2027 to facilitate cash refunds to eligible customers.
The lawsuit was filed by law firm Echo Law, which alleged the airline had “unlawfully benefitted” by holding large amounts of customer funds that should have been refunded.
Details on how affected passengers can claim their refunds are expected to be released by the court in the coming weeks.
