Qantas Compensates and Fines USD 79 Million for Unauthorized Ticket Sales on Cancelled Flights

Many consumers will have made holiday, business and travel plans after booking on a phantom flight that had been cancelled, she added.Qantas also admitted its misconduct continued until August last year, more than a year longer than the regulator has alleged in court, Cass-Gottlieb said.

Qantas Airways agreed to pay 120 million Australian dollars (USD 79 million) in compensation and a fine for selling tickets on thousands of cancelled flights, the airline and Australia's consumer watchdog said on Monday.

The Australian Competition and Consumer Commission sued the Sydney-based airline in the Federal Court last year. The commission alleged that Qantas engaged in false, misleading or deceptive conduct by advertising tickets for more than 8,000 flights from May 2021 through to July 2022 that had already been cancelled.

Qantas agreed to settle the suit by paying a AU$100 million (USD 66 million) fine to the Australian government and a projected AU$20 million (USD 13 million) to more than 86,000 affected customers.

"Today represents another important step forward as we work towards restoring confidence in the national carrier," Qantas chief executive Vanessa Hudson said in a statement.

"When flying resumed after the COVID shutdown, we recognize Qantas let down customers and fell short of our own standards. We know many of our customers were affected by our failure to provide cancellation notifications in a timely manner and we are sincerely sorry," said Hudson, who replaced Alan Joyce at the airline's helm in November last year.

A Federal Court judge has yet to accept the settlement.

ACCC chair Gina Cass-Gottlieb said Qantas' payments of AU$225 (USD 149) to domestic ticket holders and AU$450 (USD 298) for international bookings were in addition to other remedies already provided by Qantas, including alternative flights and refunds.

"We are pleased to have secured these admissions by Qantas that it misled its customers, and its agreement that a very significant penalty is required as a result of this conduct," Cass-Gottlieb said in a statement.

"Qantas' conduct was egregious and unacceptable. Many consumers will have made holiday, business and travel plans after booking on a phantom flight that had been cancelled," she added.

Qantas also admitted its misconduct continued until August last year, more than a year longer than the regulator has alleged in court, Cass-Gottlieb said.

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