Australian airline Qantas Airways said on Friday it has agreed to settle a class action lawsuit related to flight vouchers issued during the COVID-19 pandemic for A$105 million ($74.26 million), without admitting any legal liability.
Here are some details:
* The settlement, which is subject to approval by the Federal Court of Australia, relates to flights that were scheduled between January 2020 and November 2022 but were canceled by the airline. * The settlement amount is higher than the A$55 million provision Qantas Airways disclosed in its most recent half-year results in February for the flight voucher class action lawsuit. * Australia’s national airline said any additional comparative charge outside of adjusted earnings would be recognized in the second half of fiscal 2026, impacting net earnings. * Echo Law, the law firm that filed the class action lawsuit on behalf of the affected clients, announced on its website that the parties have agreed to a settlement. * The lawsuit, filed in August 2023, included allegations that Qantas breached contractual obligations by failing to provide refunds for flights canceled during the pandemic. * In August 2023, Qantas removed the expiry date for flight vouchers issued during the pandemic, allowing customers to claim a cash refund indefinitely. * The airline said the settlement amount will be paid to a court-appointed administrator, with payment currently expected in the first half of fiscal 2027.
($1 = 1.4140 Australian dollars)
