Qantas issues apology to customers as airline faces ACCC suit over cancelled flight refunds

Qantas has issued a grovelling apology to customers after being accused of flogging tickets for “ghost flights” that were already cancelled.

Qantas has issued a grovelling apology to customers over allegations of “false, misleading and deceptive conduct” after it was accused of flogging tickets for flights that were already cancelled.

But hinting it may fight the allegations, the airline has insisted that it was “longstanding practice” to offer passengers of cancelled flights an alternative service or a refund and this was the case in this instance.

The Australian Competition and Consumer Commission will allege that for more than 10,000 flights scheduled to depart in mid 2022, Qantas did not notify existing ticket holders their flights had been cancelled for up to 48 days.

The ACCC has launched Federal Court action over the allegations and is seeking a record penalty of around $250 million, double the previous highest penalty issued to a company for a breach of Australian Consumer Law.

In a statement today, Qantas said it continues to review the allegations made by the ACCC and “will have more to say once we’ve had that opportunity.”

“Understandably, these allegations have caused significant concern among our customers, our people and the general community,’’ the statement says.

“We want to address those allegations as best we can without cutting across the legal process we are now involved in, which follows an ACCC investigation with which we fully cooperated.

“The period of time that the ACCC’s claims relate to, in mid-2022, was one of well-publicised upheaval and uncertainty across the aviation industry, as Qantas struggled to restart post-COVID.

“We openly acknowledge that our service standards fell well short and we sincerely apologise. We have worked hard to fix them since and that work continues.”

Qantas CEO Alan Joyce. Picture: Peter Boer/Bloomberg via Getty Images

However, Qantas also took aim at some commentary that had suggested that the airline was engaged in charging a ‘fee for no service’ due to cancelled flights over this period.

“Our longstanding practice is that when a flight is cancelled, customers are offered an alternative flight as close as possible to their original departure time, or a refund,’’ a spokesman said.

But those refunds have also been plagued with controversy.

On Friday, Qantas Airways announced it would scrap the expiry date on flight refunds for $370 million of flights cancelled or disrupted due to the border closures during Covid-19.

Given bookings that have been converted into COVID credits date back to 2019, Qantas claimed that most credit cards used have expired by now, “meaning the funds will bounce back if we attempt to refund them.”

“The ACCC’s allegations come at a time when Qantas’ reputation has already been hit hard on several fronts,’’ Qantas’ statement today states.

“We want the community to know that we hear and understand their disappointment. We know that the only way to fix it is by delivering consistently. We know it will take time to repair. And we are absolutely determined to do that.”

Qantas has issued an apology to customers. Picture: NCA NewsWire / David Geraghty

Last week, Mr Joyce himself issued a grovelling apology to customers for the furore in a video address.

Mr Joyce said the company had “listened” to furious customers.

“We know the credit system was not as smooth as it should have been,’’ he said.

“And, while we’ve improved it recently, and extended the expiry date several times, people lost faith in the process.”

In an olive branch to Qantas frequent flyers the company will also offer incentives to use the credit towards their next journey.

“That’s why we’re also announcing a double Frequent Flyer Point offer when you book a flight with your Qantas COVID credit before the end of the year,’’ he said.

“All up, this is one of the most flexible approaches that any airline has taken to its COVID credits.”

The airline is already facing a class action over the refunds and claims it planned to pocket the money if customers failed to seek a refund in time.

The furore follows reports that Prime Minister Anthony Albanese’ 23-year-old son, Nathan, was a member of the invite-only Qantas Chairman’s lounge, a fact that is not mentioned on Mr Albanese’s register of public interests.

In the latest Qantas statement, the airline signed off with a herogram for staff who unions say are copping abuse from customers for the mess.

“To the 25,000 people who make up the Qantas Group, we say thank you,’’ Qantas said.

“Every day, you are focused on carrying customers safely to their destination and your professionalism in doing so is superb.”