Qantas faces lawsuit for not refunding tickets

Tuesday, August 22, 2023

Australian airline Qantas is facing a class action lawsuit as hundreds of thousands of travellers affected by the pandemic claim the carrier’s credit scheme resulted in financial losses.

Law firm Echo Law initiated the lawsuit, alleging Qantas misled customers regarding refund options, withheld funds, and engaged in “unconscionable conduct.”

The airline denied the allegations, asserting that it hadn’t been formally served with the claim yet. The lawsuit comes amid a Qantas campaign encouraging customers to utilize the $400 million in flight credits remaining due to pandemic-related cancellations. The airline insisted it suffered significant financial losses during the pandemic, including over $25 billion in revenue and $7 billion in statutory losses.

The legal action claims that Qantas violated Australian Consumer Law by failing to promptly issue refunds for canceled flights in 2020, instead offering customers restrictive travel credits. Echo Law partner Andrew Paull stated that the airline took advantage of customers by retaining their funds as interest-free loans, and the lawsuit seeks refunds and compensation. Qantas responded that it had always made it clear that customers were entitled to refunds for canceled flights, with thousands having already claimed refunds.

The Australian Competition and Consumer Commission is also investigating Qantas’ handling of credits and refunds following a previous warning issued to the airline in 2020 and a complaint from consumer group Choice in April 2022. The lawsuit adds to Qantas’ challenges as it deals with the financial impacts of the pandemic and prepares for a leadership transition, with CEO Alan Joyce stepping down after 15 years.

While Qantas has extended the expiration date of travel credits multiple times, customers still face challenges in using their credits before they expire. The lawsuit highlights the importance of transparent communication and customer-oriented solutions in times of disruption and uncertainty.

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