Qantas to Pay $74m Settlement Over Covid Travel Voucher Refunds

Australian airline Qantas has agreed to pay A$105m ($74m) to settle a class action lawsuit brought by passengers who claimed they were denied cash refunds for cancelled flights during the Covid-19 pandemic.

The case relates to flights cancelled between 2020 and 2022, when strict travel restrictions forced airlines around the world to suspend thousands of services.

Many affected passengers received travel vouchers instead of refunds. The lawsuit argued that the airline should have provided cash reimbursements in accordance with consumer rights.

Qantas said it had agreed to the settlement without admitting liability.

Lawsuit Accused Airline of Misleading Customers

The legal action was brought on behalf of passengers whose flights were cancelled by the airline but who were issued travel credits instead of receiving their money back.

Law firm Echo Law, which led the case, argued that Qantas breached its contractual obligations by failing to provide timely refunds.

The firm also claimed the airline engaged in “misleading or deceptive conduct” by not clearly explaining customers’ rights under Australian consumer law.

According to the claim, the airline benefited financially by holding customer funds that should have been refunded sooner.

Echo Law said the company effectively kept a large amount of passengers’ money for several years.

Settlement Higher Than Expected

The final settlement amount is significantly larger than Qantas had previously anticipated.

In its February financial results, the airline had estimated the case would cost around A$55m to resolve.

The agreed payment of A$105m is nearly double that earlier figure.

The settlement still requires court approval before payments can be distributed.

Lawyers involved in the case said details of how passengers can apply for refunds will be released once the agreement receives legal confirmation.

Airline Changed Policy on Travel Credits

Qantas said it had already taken steps to address concerns about travel vouchers issued during the pandemic.

In 2023, the airline removed expiry dates on Covid-era flight credits.

That change allowed customers to convert unused travel credits into cash refunds if they preferred.

The airline said the policy change gave passengers greater flexibility in reclaiming funds tied to cancelled flights.

Another Legal Case Targets Jetstar

Echo Law is also pursuing a similar class action against Jetstar, the Australian budget airline owned by the Qantas Group.

The case alleges that Jetstar also issued travel credits rather than refunds after pandemic flight cancellations.

Lawyers claim some customers received credits that were worth less than the refunds they were entitled to.

Echo Law said the airline benefited financially by retaining customer funds during the pandemic.

Jetstar is currently defending the lawsuit, according to people familiar with the case.

Airline Previously Fined Over Pandemic Layoffs

The settlement adds to a series of legal challenges faced by Qantas over actions taken during the pandemic.

In August 2025, the airline received a record A$90m fine after Australia’s High Court ruled that it had illegally outsourced the jobs of more than 1,800 ground workers.

The decision marked the largest penalty imposed by an Australian court for violations of industrial relations law.

Qantas accepted the ruling and apologised to the affected employees.

Chief executive Vanessa Hudson said the company recognised that its actions had caused “real harm” to workers and their families.

Pandemic Continues to Shape Airline Industry

The Covid-19 pandemic created unprecedented disruption for the global aviation industry.

Travel bans and lockdowns forced airlines to cancel millions of flights worldwide.

Many carriers issued vouchers or travel credits rather than refunds in an effort to preserve cash during the crisis.

These policies later triggered disputes with regulators and consumer groups in several countries.

For Qantas, the settlement marks another step in resolving legal disputes stemming from decisions made during one of the most challenging periods in aviation history.