SYDNEY, March 13 (Xinhua) -- Australian flag carrier Qantas said on Friday it has reached a settlement with customers who brought a class action lawsuit against the airline regarding the cancelation of flights during the COVID-19 pandemic.
Qantas said in a statement it has agreed to pay 105 million Australian dollars (74.3 million U.S. dollars) to affected customers under the terms of the settlement.
The class action suit lodged by law firm Echo Law in Australia's Federal Court in 2023 alleged that Qantas had breached its contract with customers by providing flight credits instead of cash refunds as compensation for flights that were canceled between Jan. 1, 2020, and Nov. 1, 2022.
Additionally, it alleged that Qantas engaged in unconscionable and misleading or deceptive conduct and unlawfully benefited by holding customer funds.
Qantas said the settlement is expected to be paid in the first half of the 2026-27 financial year and that it will be recognized out of its underlying earnings.
The airline in 2024 agreed to pay 120 million Australian dollars (84.9 million dollars) in penalties and compensation after admitting to offering and selling tickets for flights it had already decided to cancel between 2022 and 2024. ■
