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.