Qantas will repay $20 million to customers over “misleading” ticket advertisements for flights that were already slated for cancellation in the post-COVID era, as well as failing to notify customers of cancellations in a timely manner.
The airline and the ACCC announced the agreement today, as well as a further agreement to pay a $100 million civil penalty, pending court approval.
The consumer watchdog launched Federal Court action against Qantas in August last year, alleging that, between May 21, 2021, and July 7, 2022, Qantas advertised tickets for more than 8000 cancelled flights.
It was also alleged that, for more than 10,000 flights scheduled to depart in May to July 2022, Qantas did not promptly notify existing ticketholders that their flights had been cancelled.
“Today represents another important step forward as we work towards restoring confidence in the national carrier,” Qantas Group CEO Vanessa Hudson said.
“When flying resumed after the COVID shutdown, we recognise Qantas let down customers and fell short of our own standards.”
ACCC Chair Gina Cass-Gottlieb said the airline’s conduct had been “egregious and unacceptable”.
Qantas will repay customers who were affected through to the ending of August 2023, “when steps were taken to ensure that processing of cancellation decisions occurred promptly”.
More than 86,000 customers who made a booking on a flight two or more days after the cancellation decision will be compensated.
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Payments will range from $225 for domestic or trans-Tasman flights, to $450 for other international flights.
This is on top of any refund or alternative flight they might have been offered already.
Payments will be made through an online portal run by Deloitte, with affected customers to be emailed about how to make a claim from June.
More information can be found online.
“The return to travelling was already stressful for many and we did not deliver enough support for customers and did not have the technology and systems in place to support our people,” Hudson said.
“We have since updated our processes and are investing in new technology across the Qantas Group to ensure this doesn’t happen again.”
The ACCC is no longer proceeding with its claims against Qantas about wrongful acceptance of payment, including any allegation that Qantas received payment for a service it did not, and had no intention of, providing.
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