Qantas axes expiry date for travel credits, after listening to customers

Qantas will scrap the expiry date on its $570m bank of travel credits and promised to provide refunds for many of the unused fares.

Qantas is ditching the expiry date on over $500m in Covid-related travel credits, giving travellers the chance to use them on flights or get a refund. Picture: Torsten Blackwood/AFP

Qantas will scrap the December 31 expiry date for $570m worth of Covid travel credits, giving travellers more time to redeem the money on flights or seek a refund.

The announcement came after increasing outrage about the amount of funds held by Qantas for flights that never happened due to Covid-restrictions.

At Monday’s Senate Committee hearing on cost-of-living it was revealed that in addition to the $370m in unused travel credits reported by Qantas, there were significant amounts of unused credits held by Jetstar, and amassed by customers outside of Australia.

On Thursday, Qantas clarified the total amount of credits yet to be used by customers was $570m.

“Of this total, about $180 million is connected to bookings made through travel agents, who are responsible for contacting their clients directly,” said Qantas.

“All of these amounts were reflected in the original $2 billion figure that has been widely reported and are not ‘new’.”

Jetstar CEO Steph Tully suggested at Monday’s hearing it was necessary to “draw a line in the sand” on the issue, but the airline group has since had a change of heart.

In a video message to customers with travel credits, Qantas CEO Alan Joyce said the expiry date was being scrapped because “we’ve listened”.

“We know the credit system was not as smooth as it should have been,” Mr Joyce said.

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

He said customers who had a Qantas Covid credit could request a cash refund at any point in the future, and Jetstar customers with a Covid voucher, could use it for travel indefinitely.

“These credits and vouchers will never expire,” Mr Joyce added.

He stressed that this approach was “one of the most flexible that any airline had taken to its Covid credits”.

“And it comes on top of the huge amount of work happening to improve how we serve you every day,” said Mr Joyce.

“We’ll keep reaching out directly to everyone with a Covid voucher or credit with information on how to redeem them. Please read the details in the emails we’re sending you.”

Virgin Australia had also imposed a December 31 expiry date on its Covid-related travel credits, but was not commenting on whether that would be changed in light of the Qantas announcement.

The airline has around $400m in unused travel credits leftover from the Covid pandemic period.

Qantas advised customers unsure of their “travel credit status” to make use of a “find my credit” tool on the airline’s website.

Those who wished to seek a refund were urged to call 1300 668 885, or 1300 171 505 to speak to a travel credit concierge.

It was estimated the number of people with outstanding travel credits ran into the millions, with many of the fares concerned worth under $500.

The announcement came as the ACCC revealed it had started legal action against Qantas for selling tickets on 8000 flights that it had cancelled between May and July 2022.

Qantas was taking the allegations seriously, and said it would respond in full in court.

No date has yet been set for the case to be heard in the Federal Court.