Qantas agrees to $105 million settlement over COVID-19 flight credit refunds

Qantas has agreed to pay a $105 million AUD ($74 million USD) settlement after a class action was launched on behalf of customers who received travel credits instead of cash refunds for canceled flights.

On the 13th of March 2026, Echo Law, representing the affected customers, confirmed the deal with Qantas, covering flights canceled between the 1st of January 2020, and the 1st of November 2022. “The settlement still requires Court approval and comes with no admission of liability from Qantas,” an Echo Law spokesperson said. 

The lawsuit claimed Qantas breached contracts by failing to issue timely cash refunds and instead offering travel credits and further accused the airline of misleading customers about their rights under Australian Consumer Law.

The four main allegations towards Qantas were: 

• It breached its contract with customers by failing to provide cash refunds, 
• It engaged in misleading conduct. 
• It unlawfully benefited from customers by holding a significant amount of customer funds that ought to have been refunded 
• It engaged in unconscionable conduct.

In the coming weeks the Court will be asked to approve a notice to Group Members confirming the details of the proposed settlement and setting out what Group Members must do to claim their share.