Qantas customers to receive up to $450 in compensation over ‘phantom’ flights

The top line: Tens of thousands of Australians who endured cancelled flights will each receive hundreds of dollars in compensation after Qantas admitted to misleading customers for years.

The bigger picture: The Australian Competition and Consumer Commission (ACCC) had sued the airline in the Federal Court after alleging Qantas engaged in false, misleading or deceptive conduct by continuing to sell the tickets.

The competition watchdog announced on Monday the parties had agreed to ask the court to impose a $100 million penalty after Qantas admitted the conduct went on for a year longer than the ACCC alleged.

A total of 86,597 customers, who between May 2021 and August 2023 were sold tickets Qantas had already decided to cancel, will share about $20 million in compensation.

Key quote: “This was egregious and unacceptable conduct by Qantas. Many customers will have made holiday, business and travel plans after booking on a phantom flight that had been cancelled.” — ACCC chair Gina Cas-Gottlied

What else to know: Qantas will pay $225 to domestic customers and $450 to international customers. Payments will be available through a dedicated online portal facilitated by Deloitte and will be independently audited.

What happens now: Qantas will be notifying impacted customers via email from June.

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