Qantas finally buckles on flight credits, scraps refund deadlines

Qantas has bowed to public pressure and scrapped its December 31 deadline for passengers to claim their flight credits.

Qantas has bowed to public pressure and scrapped its December 31 deadline for passengers to claim their flight credits.

The airline is expected to announce the decision today with a video from chief executive Alan Joyce apologising to customers for botching the refunds.

Mr Joyce was grilled by the senate cost of living inquiry on Monday where he and his executives were `forced into admitting there were $150 million more in outstanding credits than previously thought.

Qantas had said it still owed $370 million in flight credits from the Covid shut down but it emerged Jetstar also owed more than $100 million and overseas passengers at least another $50 million.

It is understood the airline will ditch the December 31 deadline to claim credits and allow them to sit indefinitely. However Qantas passengers who book another flight with the credit by the end of the year will earn double frequent flyer points.

Qantas CEO Alan Joyce. Picture: NCA NewsWire/Aaron Francis

After that time Qantas passengers will be able to get their money back.

Jetstar and overseas passengers were never entitled to a refund and will simply have their credit remaining to use when they want.

It is the fourth time the airline has moved the deadline with airline sources indicating that it felt a deadline was the best way to push passengers to reclaim their money.

Shadow transport spokeswoman Bridget McKenzie said: “Thanks Qantas/Jetstar for doing the right thing by Aussie travellers and extending flight credit refunds indefinitely. I now call on other airlines to follow their lead.”

This comes as the Australian Competition & Consumer Commission launched Federal Court action against Qantas, alleging the airline advertised tickets for 8000 flights that had already been cancelled but not removed from sale.

The ACCC alleged flights were scheduled to take off between May and July 2022, and Qantas kept selling tickets for an average of more than two weeks after they were cancelled.