Qantas to pay $100m fine and refund $20m for cancelled flights

Qantas Airways has agreed to pay a hefty sum of about $20 million to more than 86,000 ticketholders for cancelling flights between 2021 and 2023. This settlement comes as a result of action brought by the Australian Competition and Consumer Commission (ACCC), which has also applied for a fine of $100 million to be imposed on the airline for breaching Consumer Law.

The initial claim against Qantas involved approximately 8,000 flights that were cancelled between May 2021 and July 2022. However, the airline has admitted that the misconduct actually extended from May 2021 until August 2023, affecting tens of thousands of flights scheduled to depart between May 2022 and May 2024.

The ACCC alleged that Qantas engaged in false, misleading, or deceptive conduct by continuing to sell tickets for flights that had been cancelled for an average of more than two weeks, and in some cases up to 47 days, after the cancellations.

As part of a court-enforceable undertaking, Qantas will pay $225 to domestic ticketholders and $450 to international ticketholders, even if they had already received other remedies such as alternative flights or refunds. ACCC chair Gina Cass-Gottlieb stated, “Qantas’ conduct was egregious and unacceptable. Many consumers will have made holiday, business, and travel plans after booking on a phantom flight that had been cancelled.”

Following the settlement, Qantas plans to contact affected consumers by July 10 to inform them of their refunds. The airline has also committed to notifying customers of cancelled flights within 48 hours of the decision to cancel, and to stop selling cancelled flights within 24 hours of the decision. Additionally, Qantas will review its consumer compliance program and appoint independent auditors to monitor its compliance.