Qantas agrees to settle £55m Covid class action

Qantas has confirmed agreeing to settle a class action regarding flight credits during Covid brought against the airline in August 2023.

The airline has agreed to pay A$105 million (£55 million), with no admission of liability under the terms of the settlement.

The class action related to flights scheduled to depart between January 1, 2020 and November 1, 2022 that were cancelled by Qantas.

The lawsuit included allegations that the airline breached its contractual obligations regarding refunds.

Qantas removed the expiry date on flight credits issued during Covid in August 2023, meaning customers could request a cash refund indefinitely.

The airline said: “Qantas has previously made a provision for this matter and an increase reflecting the settlement will be recognised outside of underlying earnings in the second half of FY26. 

“The settlement amount will be paid to a court-approved settlement administrator, with payment currently expected in the first half of FY27.”

Qantas added that the settlement is subject to approval by the Federal Court of Australia.