The legal case revolves around Qantas offering customers flight credits rather than refunds for cancelled flights between January 1, 2020 and November 1, 2022.
Echo Law alleged that this was a breach of the contract the airline had with customers.
Qantas has agreed to pay $105 million to settle the class action, with the settlement still requiring approval from the federal court.
Qantas will not have to admit liability as part of the settlement arrangement.
Echo Law initiated the class action on behalf of Qantas customers in 2023.
COVID travel credits from Qantas originally came with an expiry date, however Qantas removed expiry dates from these credits in 2023. Customers with pandemic travel credits are able to claim a refund for their credit 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.
The Jetstar class action has yet to be resolved.
