Qantas customers whose flights were cancelled during the COVID-19 travel shutdown may now have a limited window to claim compensation under a proposed $105 million class action settlement. More than one million customers have been notified that they could be eligible after legal action challenged how the airline handled refunds and flight credits during one of the most disruptive periods in aviation history.
The settlement relates to Qantas flights booked between January 1, 2020, and November 1, 2022 that were later cancelled. The class action alleged that passengers should have received refunds within a reasonable timeframe instead of being issued flight credits. Qantas has agreed to settle the case without admitting wrongdoing.
For affected customers, the key issue is not only whether they eventually travelled or received money back. The case also considers whether customers lost control of their funds when credits were issued, whether refunds were delayed, and whether using a credit was equivalent to receiving a cash refund.
- Settlement value: $105 million
- Customers notified: More than one million
- Relevant booking period: January 1, 2020, to November 1, 2022
- Main issue: COVID-era cancelled flights and flight credits
- Minimum eligible payment: $50
- Claim deadline: 4:00 p.m. on October 2, 2026
- Qantas position: No admission of wrongdoing
Why the Qantas settlement matters now
The settlement is important because customers must actively register before the deadline. Affected passengers are not automatically guaranteed payment unless they complete the required claim process and meet the eligibility conditions.
During the pandemic, thousands of flights were cancelled as borders closed, travel rules shifted and airlines reduced services. Many passengers were left with credits instead of immediate refunds, creating frustration for customers who needed cash back or could not easily rebook future travel.
The Qantas case is now a major consumer compensation issue because it involves a large customer group and focuses on how airlines should treat passengers when a flight is cancelled by the carrier, not by the traveller.
Who may be eligible to claim?
Customers may be eligible if they booked a Qantas flight during the covered period and that scheduled flight was cancelled. The eligible booking window runs from January 1, 2020, to November 1, 2022.
The settlement is not limited to people who still have unused flight credits. Some customers who already used their credit or later received a refund may still qualify for a settlement payment.
This is a key point because many passengers may wrongly assume they are excluded if their issue was eventually resolved. The class action included allegations that customers should have received refunds instead of credits, that refunds were delayed, and that using a flight credit was not the same as receiving a refund.
How much compensation could customers receive?
Eligible group members who register and meet the requirements are expected to receive a minimum payment of $50. Some customers may receive significantly more, depending on the settlement distribution rules and their individual booking circumstances.
The final payment amount may depend on factors such as the value of the affected booking, how the customer’s credit or refund was handled, and how many eligible claims are approved.
| Customer situation | Could they still be eligible? |
|---|---|
| Flight was cancelled and credit was issued | Yes, if other eligibility conditions are met |
| Flight credit was later used | Possibly, because using a credit may still fall within the case |
| Refund was eventually received | Possibly, because refund delays were part of the allegations |
| Customer does not register by deadline | May miss out on payment |
What customers should do before the deadline
Customers should first check whether their booking falls within the covered period and whether the flight was cancelled by Qantas. They should then review any official notice received by email, text or post and follow the registration instructions carefully.
The Federal Court settlement notice outlines the proposed settlement process, registration deadline and customer options.
The deadline to register is 4:00 p.m. on October 2, 2026. Customers should keep booking confirmations, flight cancellation emails, refund records, credit notices and any communication from Qantas or the settlement administrator.
Why used credits and delayed refunds are central to the case
The dispute is not only about cancelled flights. It is also about what form of compensation customers received after those cancellations.
A cash refund returns money directly to the customer. A flight credit keeps the value tied to future travel, usually with conditions around use, timing or availability. During the pandemic, that difference mattered because many customers were uncertain when they would be able to travel again.
For some passengers, credits may have been useful. For others, credits meant money remained locked into an airline account at a time when household budgets were under pressure and travel plans were impossible to predict.
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How this fits into wider airline consumer issues
The Qantas settlement reflects a broader debate over passenger rights after mass cancellations. Airlines faced exceptional conditions during COVID, but customers also expected clear refund options when flights did not operate.
That tension continues to shape how travellers view airline policies, especially around cancellations, credits and customer service. As the aviation sector continues to reset after years of disruption, broader industry changes such as major airline takeover developments show how carriers are still adjusting to post-pandemic financial and operational pressures.
How to avoid missing a valid claim
Customers should not assume they are ineligible just because their credit was used, expired, replaced or refunded later. The safest step is to review the official notice and confirm whether the booking is part of the covered group.
Anyone registering should use only official settlement channels and be cautious about unofficial messages asking for upfront payment or unnecessary personal information. The official process should be checked through the court-approved notice or settlement administrator information.
For many travellers, the payment may be modest. But for customers who had higher-value bookings or experienced long delays, the settlement may provide more meaningful compensation. The most important step is acting before the October deadline.
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