What are the key details of the Qantas (ASX:QAN) class action settlement?

Qantas has agreed to pay $105 million to settle a class action involving flight credits issued during the Covid-19 pandemic. The settlement addresses allegations that the airline breached contractual obligations regarding refunds for flights cancelled between January 2020 and November 2022.

Is Qantas (ASX:QAN) admitting fault in this settlement?

No, the settlement agreement includes no admission of liability by Qantas. This is a common legal strategy to resolve litigation and avoid further court costs or reputational damage without formally conceding to the allegations of contractual breaches.

How will the $105 million settlement affect Qantas’ financial results?

The settlement will be recognized as an expense outside of underlying earnings in the second half of fiscal year 2026 (H2 FY26). While it impacts the statutory bottom line, the company had already made partial provisions for the matter, meaning the net "new" hit to the balance sheet is an adjustment rather than a total surprise.

When will the settlement funds actually be paid out?

Qantas expects to pay the $105 million to a court-approved administrator during the first half of the 2027 financial year (H1 FY27). This timeline suggests the cash outflow will not immediately impact the current reporting period’s liquidity but will be a significant item in next year's cash flow statement.

Qantas settles flight credit class action for $105 million

Written by Mahathir BayenaPublished Mar. 12 2026

Qantas has reached an agreement to pay $105 million to settle a class action regarding flight credits issued during the Covid pandemic.

The settlement resolves a legal challenge commenced in August 2023 involving flights scheduled to depart between January 2020 and November 2022 that were cancelled by the carrier.

The agreement, which includes no admission of liability, is currently awaiting formal approval from the Federal Court of Australia.

The legal proceedings included allegations that the airline breached its contractual obligations to customers regarding refunds for those cancelled services.

Qantas had previously removed the expiry date on these credits in 2023, allowing impacted customers to request a cash refund indefinitely.

The airline confirmed that the settlement cost will be recognised outside of underlying earnings in the second half of fiscal year 2026.

At the time of reporting, Qantas' share price was $8.60.

Frequently asked questions

What are the key details of the Qantas (ASX:QAN) class action settlement?

Is Qantas (ASX:QAN) admitting fault in this settlement?

How will the $105 million settlement affect Qantas’ financial results?

When will the settlement funds actually be paid out?