Qantas launches new incentive to push $400m Covid flight credits

Qantas is reminding travellers with flight credits from the Covid era of travel to use them before it’s too late, and there’s an incentive.

Qantas is reminding passengers with flight credits from the Covid era of travel to use them before it’s too late, and it has announced an incentive for those who act quickly.

When Australia’s borders suddenly slammed shut in March 2020, causing mass flight cancellations, the Qantas Group issued most of its $2 billion worth of flight credits. That number is continuing to fall, with Qantas now left with $400 million in “Covid credits”.

The airline has told passengers owed credits they need to book a trip by the end of the year. Alternatively, refunds are an option for most flyers.

The trips can be taken up until December next year.

Qantas has extended the deadline for claiming the credits three times, and has launched a new tool to make the process easier.

‘Find My Credit’ is available on the Qantas website and allows Qantas and Jetstar passengers to search for their Covid credits using their original booking reference, even if it has been reissued or converted to a Qantas Pass. It will then assist the passenger in how to redeem their credit.

Qantas has also announced that customers who book a flight using a Covid credit between today and July 31 will receive double Frequent Flyer points. Travellers needs to visit this website and book an eligible flight with a QF flight number, and double points will be awarded from eight weeks after travel.

Qantas has reminded passengers to use their Covid credits. Picture: NCA NewsWire / David Geraghty

Qantas Group chief customer officer Markus Svensson said passengers had a range of options for using their Covid credits.

“We know the credits system has been challenging because of the sheer complexity of putting millions of bookings in a holding pattern for up to three years,” Mr Svensson said.

“We’ve made a number of improvements to our systems along the way and that’s clear from the amount of credit that has already been claimed.

“Qantas has one of the most flexible Covid credit policies of any airline, including among our global peers, and we’ve extended the booking expiry date three times.”

Qantas has changed the booking expiry date three times. Pictured is outgoing Qantas CEO Alan Joyce. Picture: Steve Creedy

He said passengers need to contact Qantas if they’d like to inquire about a refund.

“The majority of the Covid credits we hold can be converted into refunds but we can’t do it automatically as the credit cards used for the purchase as far back as 2019 may have expired.

“We’d obviously like customers to use their Covid credit to fly with us, but if they’d prefer a refund, we’re putting additional processes in place to help with that.”

Most Covid credits are refundable. Picture: Qantas

It came after some frustration from passengers when trying to claim their credits, as acknowledged by Mr Svensson in March.

“No airline had systems that were designed to manage that in a seamless way and we realise there’s been frustration for some customers as a result,” he said.

Planes parked on the runway at Sydney Airport on May 20, 2020 – this runway was shut to make space to store aircraft grounded due to the pandemic. Picture: James D. Morgan/Getty Images

Qantas just announced a mega sale with more than one million discounted airfares across Australia and to North America. The airline’s red tail sale will see flights to New York, Los Angeles, San Francisco, Dallas, Vancouver and Honolulu discounted from most capital cities.

Covid credits received during the pandemic can be used when booking the sale fares.

The cheapest flight is between Melbourne and Honolulu which will set travellers back $999 for the return trip.

Those travelling from Sydney to New York will be set back $1799 and these flights even include the new route through Auckland.

A flight from Brisbane to San Francisco will cost $1299 while Adelaide to Vancouver is priced at $1599.

Qantas says that its domestic flights are discounted by an average of 30 per cent compared to their normal cost with 120 domestic routes included in the sale.

The cheapest domestic flight at $99 one way is from Launcestion to Melbourne, while a flight from Perth to Sydney will cost $299.

Flights from Sydney to Townsville will run at $209 while the Gold Coast to Sydney will cost travellers $119.