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Qantas has started reaching out to passengers affected by its “ghost flights” to offer compensation.
Customers who booked Qantas flights scheduled to depart between 1 May 2022 and 10 May 2024 that had already been cancelled will receive $225 for domestic and trans-Tasman flights, and $450 for international flights, on top of any other refund or alternative flight already offered.
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The Flying Kangaroo will pay around $20 million in total to 86,000 customers, with another $100 million in penalties, after reaching a deal with the ACCC in May.
The airline began contacting customers on 30 June to advise them of their eligibility, with passengers who booked flights two or more days after they had already been cancelled now in line for the payments.
“We know we let a lot of people down by not processing cancelled flights quickly enough, and this program is another important step as we rebuild trust with our customers,” a Qantas spokesperson said.
“We’ve updated our processes and are investing in technology to ensure this doesn’t happen again.”
Customers have been told to look for an email from Qantas, followed by an email and text message from Deloitte, on how to claim their payments, with all emails expected to be sent by 10 July. Customers will have until 7 May 2025 to make a claim, with all unclaimed funds after that date to be donated to charity.
The agreement with the ACCC saw the Flying Kangaroo concede that it had sold tickets to thousands of flights it had already cancelled between 21 May 2021 and 26 August 2023 and accept a $120 million penalty.
However, in a significant win, the Flying Kangaroo said the ACCC was no longer proceeding with claims the airline received payment for flights it had no intention of providing – essentially removing the suggestion it deliberately misled consumers.
The consumer watchdog announced in August last year it was taking Qantas to the federal court over the matter, which many believe contributed to the early exits of CEO Alan Joyce and chairman Richard Goyder.
The new deal saw both parties ask the Federal Court to impose a penalty of $100 million on Qantas for breaching the Australian Consumer Law.
The claims originally stated that between 21 May 2021 and 7 July 2022, Qantas advertised tickets for more than 8,000 cancelled flights.
It was also alleged that, for more than 10,000 flights scheduled to depart in May to July 2022, Qantas did not promptly notify existing ticketholders that their flights had been cancelled.
