Sydney, Australia: Australian flag carrier Qantas Airways has agreed to pay A$105 million (about US$74 million) to settle a class-action lawsuit filed by customers over cancelled flights during the COVID-19 pandemic, bringing an end to a long-running dispute over the airline’s refund practices.
The settlement, announced on March 13, 2026, relates to domestic and international flights scheduled between January 1, 2020 and November 1, 2022 that were cancelled as global travel restrictions disrupted aviation worldwide. Instead of issuing cash refunds, the airline had provided passengers with travel credits, prompting legal challenges from affected customers.
The case was brought in 2023 by Australian law firm Echo Law on behalf of hundreds of thousands of passengers who claimed the airline breached contractual obligations by failing to promptly refund cancelled tickets. The lawsuit also alleged the airline engaged in misleading or deceptive conduct and unlawfully retained customers’ money for extended periods.
Under the proposed agreement, Qantas will pay the A$105 million settlement without admitting liability. The deal must still receive approval from the Federal Court of Australia, after which eligible customers will be notified about how to claim their compensation.
If approved, the funds will be distributed to affected passengers through a court-appointed administrator. Payments could begin once the settlement process is finalized, with compensation amounts varying depending on the cost of the original ticket and how long customers were deprived of their funds.
Echo Law partner Andrew Paull said the settlement represents a meaningful outcome for travelers affected by pandemic-era cancellations, noting that the compensation will be shared among hundreds of thousands of passengers. Typical payouts could amount to hundreds of dollars, though exact sums will depend on the number of claims submitted and the value of cancelled bookings.
The dispute stemmed from the airline’s decision during the pandemic to issue flight credits rather than immediate cash refunds, a policy that drew widespread criticism from customers and consumer advocates. During the COVID-19 crisis, airlines around the world faced massive cancellations and severe financial pressure, leading many carriers to rely on travel vouchers or credits to manage cash flow.
Facing mounting backlash, Qantas later removed the expiry dates on its COVID-era travel credits, allowing passengers to request refunds indefinitely. However, the class action continued, arguing that the airline should have provided refunds earlier under Australian consumer law.
The settlement may help the airline draw a line under a series of controversies that have affected its reputation since the pandemic, including legal disputes and regulatory scrutiny over customer service and operational practices.
