Qantas to Compensate Customers with $79 Million Settlement

CANBERRA, Australia: Qantas Airways has reached a settlement agreement to pay 120 million Australian dollars ($79 million) in compensation and fines for selling tickets on thousands of flights that were subsequently cancelled, announced the airline and Australia’s consumer watchdog on Monday.

The Australian Competition and Consumer Commission (ACCC) filed a lawsuit against the Sydney-based airline in the Federal Court last year, accusing Qantas of engaging in false and misleading conduct by advertising tickets for over 8,000 flights from May 2021 to July 2022 that had already been cancelled.

Also Read: Texas Flood: Rivers Swell to Dangerous Levels Across The State

As part of the settlement, Qantas will pay a AU$100 million ($66 million) fine to the Australian government and an estimated AU$20 million ($13 million) to more than 86,000 affected customers.

Qantas CEO Vanessa Hudson expressed the importance of the settlement in restoring confidence in the airline. “Today represents another important step forward as we work towards restoring confidence in the national carrier,” said Hudson. She also acknowledged the airline’s shortcomings, particularly in notifying customers of cancellations promptly.

The settlement is pending approval from a Federal Court judge.

According to ACCC chair Gina Cass-Gottlieb, Qantas will provide additional compensation of AU$225 ($149) to domestic ticket holders and AU$450 ($298) for international bookings, in addition to alternative flights and refunds already offered by the airline.

Cass-Gottlieb emphasized the severity of Qantas’ conduct, describing it as “egregious and unacceptable,” and noting the impact on consumers who made travel plans based on cancelled flights.

Furthermore, the regulator revealed that Qantas’ misconduct persisted until August last year, a year longer than previously alleged in court.

The lawsuit was filed shortly after Qantas reported a record profit for the fiscal year ending June 30, 2023, following years of losses due to the pandemic. The airline reported an underlying profit of AU$2.47 billion ($1.6 billion) before tax for 2022/23, compared to a AU$1.86 billion ($1.2 billion) loss in the previous year. After-tax profit for the latest year was AU$1.74 billion ($1.13 billion).

Key Points

Here are the key points from the rewritten news content:

1. Settlement Reached: Qantas Airways has agreed to a settlement to pay 120 million Australian dollars ($79 million) in compensation and fines for selling tickets on thousands of cancelled flights.
2. Legal Action by ACCC: The Australian Competition and Consumer Commission (ACCC) filed a lawsuit against Qantas in the Federal Court, alleging false and misleading conduct.
3. Misleading Advertising: Qantas was accused of advertising tickets for over 8,000 flights that had already been cancelled between May 2021 and July 2022.
4. Compensation: Qantas will pay a AU$100 million ($66 million) fine to the Australian government and an estimated AU$20 million ($13 million) to over 86,000 affected customers.
5. CEO Statement: Qantas CEO Vanessa Hudson acknowledged the airline’s failure to provide timely cancellation notifications and expressed commitment to restoring confidence in the airline.
6. Additional Compensation: Affected customers will receive additional compensation of AU$225 ($149) for domestic tickets and AU$450 ($298) for international bookings, in addition to alternative flights and refunds.
7. Regulatory Response: ACCC chair Gina Cass-Gottlieb described Qantas’ conduct as “egregious and unacceptable” and emphasized the impact on consumers.
8. Duration of Misconduct: Qantas admitted that its misconduct continued until August of the previous year, longer than initially alleged by the regulator.
9. Financial Performance: The settlement comes after Qantas reported a record profit for the fiscal year ending June 30, 2023, following years of losses due to the pandemic.
10. Profit Figures: Qantas reported an underlying profit of AU$2.47 billion ($1.6 billion) before tax for 2022/23, with an after-tax profit of AU$1.74 billion ($1.13 billion) for the latest year.