QANTAS: COVID credit class action means more than a million customers will receive payout notices

More than one million Qantas customers are set to receive notices explaining how to claim compensation. These customers were issued flight credits, rather than refunds, for cancelled flights during the COVID-19 pandemic.

Law firm Echo Law began contacting eligible customers on Monday, 29 June. This follows Qantas’ March settlement of a long-running class action. The settlement is worth about $105 million. But not all of that money will land in passengers’ bank accounts.

The legal action concerned customers whose Qantas flights were cancelled between 2020 and 2022 but who were given travel credits instead of refunds. Those credits initially carried expiry dates, leaving travellers under pressure to rebook while borders were closed and travel remained uncertain.

Eligible customers will receive at least $50, with payments increasing based on how long they waited for a refund.

Qantas has not admitted fault as part of the settlement. However, the dispute became one of the more visible symbols of customer frustration. One of many Qantas-related frustrations associated with the pandemic, alongside lengthy delays and high fares.

Notices will be sent during July

Echo Law says that notices will be issued progressively to affected customers until 10 July 2026. Customers who believe they are eligible but do not receive a notice can register to participate in the settlement until early October.

The airline says travellers with unclaimed COVID credits can still seek a refund directly from Qantas. Qantas removed expiry dates from its remaining COVID-era credits in 2023. That was after considerable public and regulatory pressure.

There were around $570 million in credits. However, some passengers found that their original credit no longer came close to covering the cost of an equivalent replacement journey.

Legal costs for the settlement were substantial. Echo Law will receive AU$9 million, while litigation funders are expected to receive 25 per cent of the settlement, or roughly AU$25 million to AU$26.25 million.

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The class action payment will not make most passengers whole, especially those forced to pay much higher fares to travel later.

Passengers are still picking up the pieces from the pandemic’s effect on flights. Qantas is not the only airline, with Virgin Australia recently having to extend the time when flight credits could be spent, although the redemption date still 30 June, 2026.