The Australian Federal Court has approved a settlement requiring Qantas to pay AUD 120 million (USD 81 million) to the Australian Competition and Consumer Commission (ACCC) for ticket sales related to canceled flights. The settlement addresses allegations that the airline unfairly charged passengers.
Background of the Case
The ACCC initiated legal proceedings against Qantas in August 2023 after it was found that the airline continued to accept bookings for canceled flights. The two parties reached an out-of-court agreement in May. Specifically, Qantas sold tickets for 70,543 canceled flights, continuing to do so for two or more days after the cancellations were announced. It was determined that ticket sales persisted for an average of 11 days, with some cases extending up to 62 days.
Court Ruling
During the Federal Court hearing in Melbourne on October 8, Judge Helen Rofe stated that Qantas’s excessive behavior justified the proposed nine-figure penalty and would serve as a deterrent. Under the agreement, Qantas will pay AUD 100 million (USD 67.5 million) in fines to the ACCC and AUD 20 million (USD 13.5 million) in compensation to affected passengers.
Although Qantas claimed the cancellations were due to a technical issue, it was revealed that senior executives were aware that ticket sales for the canceled flights were not being halted. Consequently, the airline updated its IT infrastructure to ensure that canceled flights were immediately removed from the booking system. Former CEO Alan Joyce apologized after the incident, noting that it led to a reduction in bonuses for himself and other board members.
In its October 8 statement, the ACCC emphasized, “A large and well-resourced company like Qantas should have strong operational and compliance programs in place to prevent such issues.” Qantas declined to provide additional information beyond its previous statements regarding the matter.
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