Qantas will pay $120 million in compensation to the more than 1800 workers it illegally outsourced during the pandemic.

Under the agreement, the national carrier will set up a fund early next year to pay 1820 ex-workers impacted by the pandemic-era decision.

“This is an important step in bringing closure to these individuals and I want to reiterate our sincere apologies to those impacted and their families,” Qantas chief executive Vanessa Hudson said.

“We know this has been a difficult period for those affected and are pleased we have been able to work closely with the TWU to expedite this process and resolve it ahead of Christmas.”

The TWU labelled the agreement a “huge result from members’ unity over a four-year court battle”.

In its 2024 annual report, Qantas said it had allocated an extra $70 million towards expected costs in relation to the case – one of the reasons its profit fell from $1.7 to $1.25 billion this year.