Qantas will pay customers impacted by the sale of cancelled flights up to $450 each after the Federal Court approved a compensation settlement struck between the airline and the Australian Competition and Consumer Commission (ACCC).
This follows a ruling in May that ordered Qantas to pay $100 million in penalties for misleading consumers by selling tickets for flights that it had already decided to cancel.
As well as selling tickets for cancelled flights, the airline also admitted to violations of the Australian Consumer Law by failing to remove these flights from its booking system.
In addition, the carrier failed to notify ticket holders of the cancellations in a “timely manner”, Qantas Group CEO Vanessa Hudson said in May.
The flying kangaroo acknowledges that its actions generated revenue from customers who may have opted for alternative options had they known about the cancellations.
“This is a substantial penalty, which sets a strong signal to all businesses, big or small, that they will face serious consequences if they mislead their customers,” ACCC Chair Gina Cass-Gottlieb said.
“We all know the inconvenience of cancelled flights. When this happens, consumers need to know about the cancellation as soon as possible, so they can work out alternative arrangements which suit them.
“People had made plans, and may have spent money on other related purchases, relying on the fact that the flight would depart as advertised. And the delay in notifying them of the cancellation may have made it more stressful and costly to make alternative arrangements.”
In total, Qantas Group’s actions impacted:
- 70,543 flights (69,237 domestic and trans-Tasman flights, and 1,306 international flights)
- 86,597 consumers who made bookings on, or were re-accommodated to, a flight that had already been cancelled (81,238 domestic or trans-Tasman customers and 5,359 international customers).
What travellers will get
The compensation plan includes about $20 million for consumers who purchased tickets for flights that Qantas cancelled or who were rebooked onto such flights. If the full $20 million is not used by the program’s end, any remaining funds will be donated to a charity approved by the ACCC.
Passengers who booked or were re-accommodated on flights two or more days after the cancellation decision will receive $225 for domestic or trans-Tasman flights and $450 for international flights.
These payments are in addition to any refunds or alternate arrangements previously provided.
Qantas has already reached out to eligible customers, most of whom were contacted by 10 July 2024. Consumers have until 6 May 2025 to submit their claims through the Qantas Customer Remediation Program.
Payments will be made within 60 days after Qantas and Deloitte, the program administrator, accept the required payment information.
Travel advisors whom Karryon contacted are not aware of any action required by agents at this stage.
Following these legal proceedings, Qantas has adjusted its systems to prevent similar incidents.
The ACCC also recognised Qantas’ cooperation and its early effort to address the issues through the remediation program.
More information about the compensation process is available on the Qantas website, where eligible consumers can verify their eligibility and submit claims.
“The ACCC urges all eligible consumers impacted by this conduct to submit their claims as soon as possible, so they can receive their payment,” Cass-Gottlieb said.
“A large, well-resourced company like Qantas should have had strong operating and compliance programs in place that would have prevented these issues from arising.
“However, we are pleased that Qantas has made changes to its operating and scheduling, and has undertaken to amend its compliance programs.”
In May, Qantas boss Vanessa Hudson said the announcement marked “another important step forward as we work towards restoring confidence in the national carrier”.
