The legal case revolves around Qantas offering customers flight credits rather than refunds for cancelled flights between 2020 and 2022.
Echo Law alleged that this was a breach of the contract the airline had with its customers.
Qantas has agreed to pay $105 million to settle the class action, with this arrangement still requiring approval from the federal court.
Qantas will not have to admit liability as part of the settlement.
Echo Law initiated the class action on behalf of Qantas customers in 2023.
COVID travel credits from Qantas originally came with an expiration date, however Qantas removed expiry dates from these credits in 2023. Customers still holding pandemic travel credits now retain the ability to claim a refund for their credits indefinitely.
In its latest half-year results, Qantas made a $55 million provision relating to the expected costs of the class action, while recognising the final cost “may vary significantly from the amount provided”.
Echo Law has brought a similar class action against Qantas’ low-cost airline Jetstar relating to flight cancellations and the issuing of travel credits rather than cash refunds for cancelled flights during the pandemic.
The Jetstar class action has yet to be resolved.
