Qantas will pay AU$105 million to settle a class action over unpaid refunds for flights cancelled during the Covid-19 pandemic, pending court approval.

SYDNEY: Qantas Airways will pay AU$105 million (USD 74 million) to settle a class action over unpaid refunds for flights cancelled during the Covid-19 pandemic.

The settlement, announced on Friday, resolves allegations that the airline misled customers and failed to provide cash refunds for flights cancelled between 2020 and 2022.

The class action, brought by Echo Law on behalf of Australian passengers, covered both international and domestic flights.

Qantas had provided flight credits instead of cash refunds during that period.

“Under the terms of the settlement agreement, Qantas has agreed to pay AU$105 million, with no admission of liability,” the airline stated.

The deal is still subject to court approval.

Qantas said the money to fund cash refunds will be paid to an administrator in the first half of 2027.

Echo Law alleged Qantas had “unlawfully benefited from customers by holding for years a very significant amount of customer funds that ought to have been refunded”.

The law firm said the court will provide details on how customers can claim refunds in the coming weeks.

 The Sun Malaysia