Qantas to Pay $105 Million to Settle Covid Flight Credit Class Action

Qantas Airways Limited ( (AU:QAN) ) has issued an announcement.

Qantas Airways has agreed to settle a class action over flight credits issued during the Covid period, resolving allegations that it breached contractual refund obligations for flights scheduled between January 2020 and November 2022 that were cancelled by the airline. The company will pay $105 million under the settlement, with no admission of liability, and expects the increased provision to be recognised outside underlying earnings in the second half of FY26, while the funds are to be distributed by a Court-approved administrator, currently expected in the first half of FY27.

This settlement follows Qantas’s earlier move in August 2023 to remove expiry dates on Covid-related flight credits, allowing customers to request cash refunds indefinitely. The resolution helps Qantas draw a line under a high-profile Covid-era customer redress issue, clarifying its financial impact and potentially improving customer relations and regulatory perceptions as the airline continues to rebuild its post-pandemic reputation and operations.

The most recent analyst rating on (AU:QAN) stock is a Hold with a A$8.50 price target. To see the full list of analyst forecasts on Qantas Airways Limited stock, see the AU:QAN Stock Forecast page.

More about Qantas Airways Limited

Qantas Airways Limited is Australia’s flag carrier and a major player in the global aviation industry, operating domestic and international passenger services. The airline’s core business centres on air travel and related services for consumers and corporate customers, with a significant share of the Australian market and key routes across the Asia-Pacific and beyond.

Average Trading Volume: 5,318,337

Technical Sentiment Signal: Hold

Current Market Cap: A$13.26B

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