Australia's flagship carrier, Qantas, has been ordered to pay a £66,000 penalty after admitting it misled thousands of customers about their rights to refunds during the COVID-19 pandemic.
What Did Qantas Do Wrong?
The Australian Competition and Consumer Commission (ACCC) found that between May and July 2021, Qantas continued selling tickets for flights it had already cancelled without properly informing passengers they were entitled to refunds.
Instead of offering immediate repayments, the airline pushed customers toward accepting flight credits or rebooking options – even when flights had been axed months in advance.
The Scale of the Problem
Investigators discovered:
- Over 8,000 cancelled flights were still being advertised as 'scheduled'
- Customers weren't properly notified about cancellations
- Refund information was buried in fine print
Qantas has since acknowledged these practices were unacceptable and has implemented new systems to prevent similar issues.
Why This Matters for Travellers
This case sets an important precedent for passenger rights during major disruptions. Airlines must now:
- Clearly communicate cancellations immediately
- Prominently display refund options
- Stop selling tickets for cancelled flights
The fine serves as a warning to all carriers about transparency during crises.
Qantas's Response
In a statement, Qantas apologized and emphasized they've processed over £1.5 billion in COVID-related refunds since 2020. The airline claims the misleading practices affected a small percentage of bookings during an unprecedented operational challenge.
Consumer advocates argue the penalty, while significant, should prompt closer scrutiny of airline practices worldwide as the travel industry recovers from pandemic disruptions.
